SANford Chart

[BlackPeter]

The AGM voting results show a massive 36.46% of participating votes against the reappointment of Abigail Foote. Anyone know the back story?

Not one of the boyz?

[iceman]

I sincerely hope that these 2 appointments are interim only. The new CEO does not fill me with confidence with this deed:

SAN
24/12/2021 08:30
ADMIN
NOT PRICE SENSITIVE
REL: 0830 HRS Sanford Limited (NS)

ADMIN: SAN: Developments in Executive Leadership Team

24 December 2021

Sanford Announces Developments in Executive Leadership Team

Sanford Limited (NZX:SAN) is pleased to announce that it has made two new
interim appointments to its Executive Team, as it works to replace departing
Chief Operating Officer, Clement Chia, who leaves on January 14th.

The first is the interim role of Acting Chief Operations Officer, which will
be filled by Peter Young, effective 1 January 2022.

Sanford CEO, Peter Reidie says "Peter Young has been an influential leader
across our business since joining Sanford in 2015, leading many engineering
and broader business improvement projects to successful fruition."

The Executive Team will also benefit from the extensive fishing industry
experience of Colin Williams, GM of Fishing, who will report directly to the
CEO during this interim period, further broadening the skills and experience
at the Executive table.

Mr Reidie says "Colin's years of industry knowledge and experience are a
great asset to the team, particularly as we finalise our strategy through
till 2026, and seek to confirm the best structure required to deliver this
strategy in 2022."

For more information please contact:
Fiona MacMillan
GM Corporate Communications
Sanford

[BlackPeter]

I sincerely hope that these 2 appointments are interim only. The new CEO does not fill me with confidence with this deed:

SAN
24/12/2021 08:30
ADMIN
NOT PRICE SENSITIVE
REL: 0830 HRS Sanford Limited (NS)

ADMIN: SAN: Developments in Executive Leadership Team

24 December 2021

Sanford Announces Developments in Executive Leadership Team

Sanford Limited (NZX:SAN) is pleased to announce that it has made two new
interim appointments to its Executive Team, as it works to replace departing
Chief Operating Officer, Clement Chia, who leaves on January 14th.

The first is the interim role of Acting Chief Operations Officer, which will
be filled by Peter Young, effective 1 January 2022.

Sanford CEO, Peter Reidie says "Peter Young has been an influential leader
across our business since joining Sanford in 2015, leading many engineering
and broader business improvement projects to successful fruition."

The Executive Team will also benefit from the extensive fishing industry
experience of Colin Williams, GM of Fishing, who will report directly to the
CEO during this interim period, further broadening the skills and experience
at the Executive table.

Mr Reidie says "Colin's years of industry knowledge and experience are a
great asset to the team, particularly as we finalise our strategy through
till 2026, and seek to confirm the best structure required to deliver this
strategy in 2022."

For more information please contact:
Fiona MacMillan
GM Corporate Communications
Sanford

I guess they need to have somebody to take the sick calls and signing the leave applications while they are looking for a new COO ... and if they would be sure, they would not have made him only "acting COO".

On the other hand ... do you know more about him?

Based on the announcement it is not clear whether they consider him the best in the team, but not yet ready for the COO position, whether they consider him ready, but want to do due diligence through a recruitment campaign / process ... or whether they consider him just the best to fill the gap to sign leave applications (as above).

Obviously - the fact that Colin Williams will not report into the acting COO but in the interim into the CEO might tell a bit of a story related to - well, let say - tensions in the team. Maybe a bit of a competition between the two?

Anyway we always could ask Fiona for more information, but I doubt we would be lucky :p;

[iceman]

I guess they need to have somebody to take the sick calls and signing the leave applications while they are looking for a new COO ... and if they would be sure, they would not have made him only "acting COO".

On the other hand ... do you know more about him?

Based on the announcement it is not clear whether they consider him the best in the team, but not yet ready for the COO position, whether they consider him ready, but want to do due diligence through a recruitment campaign / process ... or whether they consider him just the best to fill the gap to sign leave applications (as above).

Obviously - the fact that Colin Williams will not report into the acting COO but in the interim into the CEO might tell a bit of a story related to - well, let say - tensions in the team. Maybe a bit of a competition between the two?

Anyway we always could ask Fiona for more information, but I doubt we would be lucky :p;

Possibly, but hopefully not for the COO position ! They need a good experienced outsider to come and kick arse

[Marilyn Munroe]

Possibly, but hopefully not for the COO position ! They need a good experienced outsider to come and kick arse

A red eyed Icelandic cod fisherman who can trace his lineage back to Eric Bloodaxe perhaps?

Boop boop de do
Marilyn

[iceman]

A red eyed Icelandic cod fisherman who can trace his lineage back to Eric Bloodaxe perhaps?

Boop boop de do
Marilyn

Wouldn't work. They'd be too un-woke and too politically incorrect to handle !!

[Dassets]

This news sucks because I picked SAN as one of my 5 picks even though it has moved a little from food service focus. All Cathay flights to NZ and Aust are cancelled for Jan except 2 a week to SYD fm HKG. Also cancelled are DUBAI, Phuket and SINGAPORE. Why bad news? Reduction in cargo belly space AND

Year of the Tiger, Chinese New Year, starts 1 Feb. All that live seafood high margin stuff will have to swim to Hong Kong and China. Sure AIR is operating a few flights but surely they are cargo booked out.

I might as well save my shekels and go buy some cheap crayfish at Sanford and Sons just don't tell the Rabbi!

EDIT Maybe I should fuel up the Navajo, get me a Hong Kong chart and run a few loads Air America style!!

[porkandpuha]

This news sucks because I picked SAN as one of my 5 picks even though it has moved a little from food service focus. All Cathay flights to NZ and Aust are cancelled for Jan except 2 a week to SYD fm HKG. Also cancelled are DUBAI, Phuket and SINGAPORE. Why bad news? Reduction in cargo belly space AND

Year of the Tiger, Chinese New Year, starts 1 Feb. All that live seafood high margin stuff will have to swim to Hong Kong and China. Sure AIR is operating a few flights but surely they are cargo booked out.

I might as well save my shekels and go buy some cheap crayfish at Sanford and Sons just don't tell the Rabbi!

EDIT Maybe I should fuel up the Navajo, get me a Hong Kong chart and run a few loads Air America style!!

Its been years since the crays were moving into HKG.

And where did you hear all CX flights are cancelled? There are multiple services AKL-HKG throughout Jan.

[Dassets]

Cathay announced it on 22 Dec. There is some 3 rd party media coverage including Reuters. May still be showing as scheduled.

Hey there are still lots of flights scheduled into Kabul but I wouldn't advise going to the airport with your bags packed expecting to fly.

[porkandpuha]

Cathay announced it on 22 Dec. There is some 3 rd party media coverage including Reuters. May still be showing as scheduled.

Hey there are still lots of flights scheduled into Kabul but I wouldn't advise going to the airport with your bags packed expecting to fly.

I think the Dec 22nd annoucement is outdated? CX are running 3 flights per week AKL-HKG through Jan on days 7,1,2.

And regarding Dubai are you referring to the CHC-DXB services which stopped in November? EK are still running daily flights out of AKL throughout Jan.

EDIT: I wouldnt be too hard on the aviation and export sector just yet. The real test is going to come when the latest round of the IAFC scheme comes to an end in March/April and we see if the government expects the industry to finally stand on its own two feet or not.

[Dassets]

No all between HKG and other port

[Dassets]

I think the Dec 22nd annoucement is outdated? CX are running 3 flights per week AKL-HKG through Jan on days 7,1,2.

And regarding Dubai are you referring to the CHC-DXB services which stopped in November? EK are still running daily flights out of AKL throughout Jan.

EDIT: I wouldnt be too hard on the aviation and export sector just yet. The real test is going to come when the latest round of the IAFC scheme comes to an end in March/April and we see if the government expects the industry to finally stand on its own two feet or not.



Operating carrier
From ✈ To
Flight number
Departure time
Arrival time
Frequency
Operating dates


Cathay Pacific

Auckland to Hong Kong
-
-
-
-
Not operating in Jan



Hong Kong to Auckland
-
-
-
-
Not operating in Jan




From the Cathay NZ site. Maybe the flights you are talking about are the code share flights with Air NZ. Agree about IAFC and all the other direct subsidiaries with certain airline/s.

[Sideshow Bob]

Start of Post-Pandemic Recovery, but Omicron Impacts Ahead - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/387036)

Sanford Sees Start of Post-Pandemic Recovery, but Omicron Impacts Ahead

New Zealand seafood company Sanford Limited (NZX:SAN) has released a first quarter update for 2022, showing improvements in sales volumes and prices for the period, consistent with the company’s expectations.

Sales volumes are up 11% versus Q1 2021. Other notable results include:

• Pricing improvements in the wildcatch division (see graphs attached for divisional details), but lower sales volumes on the prior comparable period (pcp), down 12%. Volume impact in wildcatch offset by favourable pricing, up 24%.
• Strong customer demand for Greenshell mussels saw pricing in this division up 12% versus pcp and sales volumes up 30%.
• Strong demand in key markets sees salmon sales volumes up 47% versus pcp. Have also cleared remaining frozen stock in this period.

CEO Peter Reidie says “this is a good result, which shows that things are improving in a way that is meeting our expectations. We continue to face supply-side challenges around access to labour and freight costs. Looking ahead, there are additional challenges posed by Omicron.

“These challenges will likely be operational, where the last two years have been defined by suppressed demand. Now demand is recovering in many of our markets, but we are preparing for further disruption in local supply chains and for labour issues in a tight labour market.”

Mr Reidie says Sanford is focusing on the challenges the company can control, which includes having a fully vaccinated workforce, operating teams in bubbles wherever practicable and having plans in place to manage the absence of key individuals.

Sanford is also acknowledging challenges outside of the pandemic, such as rising ocean temperatures, which can impact aquaculture operations.

Mr Reidie says “we have seen warmer-than-usual waters in our Big Glory Bay salmon farm for January. This has had some impact on salmon mortalities, although these were not outside the previous three year’s average for this month. We are managing this carefully with lower stocking densities and additional aeration in all our salmon pens. However, the period ahead from March to May is traditionally a critical one for oxygen levels and algae, so we will continue to monitor and manage carefully.”
Sanford is exploring options for its crayfish quota, which it fishes and manages through third parties, which may result in its sale. It intends to reach a decision before the April start of the quota year for that species.

Sanford also confirms it is on track to communicate the results of its strategy refresh by June, as previously announced.

[kiora]

"Drugs on deck: Meth abuse hampers use of fisheries observers"
https://www.stuff.co.nz/national/crime/127780329/drugs-on-deck-meth-abuse-hampers-use-of-fisheries-observers

[BlackPeter]

"Drugs on deck: Meth abuse hampers use of fisheries observers"
https://www.stuff.co.nz/national/crime/127780329/drugs-on-deck-meth-abuse-hampers-use-of-fisheries-observers

To be fair - you should have highlighted the part of the article which relates to Sanford if you post such generic allegations into the thread of one specific company:

So, yes Sanford had ONE accident which involved one staff member (Mr. Stewart) taking meth, though it was never determined that meth was causing this accident.


Following Stewart’s death, Sanford now test every deepwater crew member on every voyage. “Sanford has a “zero tolerance” drug and alcohol testing policy aimed at keeping our people safe at work,” general manager of fishing Colin Williams said. “As well as procedures like post-incident testing as-standard across the business, we have a 100 per cent testing policy for all our crew members out of our Timaru deepwater base. This covers hundreds of our share fishers.

“Everyone is tested prior to the commencement of each voyage. They themselves have welcomed this policy because everyone understands it’s about safety.”

Sounds like they do everything right.

[Ferg]

I see Masfen Securities have lifted their stake from 6.3% to 7.5%. Disclosed today:
https://www.nzx.com/announcements/388759

[ronaldson]

I believe this comment does not apply to Sanford, but does to more than one other large fishing entity operating in NZ, and that is the practice of using fly in/fly out Russian crews on larger offshore vessels based here. Given the situation in Ukraine, and the widespread imposition of sanctions, it is difficult to see how that circumstance can continue, and that may be significantly disruptive across the industry.

[iceman]

I believe this comment does not apply to Sanford, but does to more than one other large fishing entity operating in NZ, and that is the practice of using fly in/fly out Russian crews on larger offshore vessels based here. Given the situation in Ukraine, and the widespread imposition of sanctions, it is difficult to see how that circumstance can continue, and that may be significantly disruptive across the industry.

Agreed. Some of the vessel managers are very concerned as some of the vessels have mixed Russian-Ukranian crews. A real tinder box.
You are correct that Sanford does not have Russian or Ukranian fishermen working for them.
Surely our sanctions should include arresting the Russian owned ships, canceling charter contracts, sending the crew home and cancelling their visas.

[iceman]

The quota asset sales continue https://www.directbroking.co.nz/DirectTrade/dynamic/announcement.aspx?id=6009275

Very sad to see this asset rich company not having the skill to maximise the benefit from these valuable assets and getting rid of them to fund a badly managed business

[ronaldson]

Announced today to NZX that Sanford selling down crayfish quota in the deep south, with more to come ( CRA2 - where is that located? ). Value to be " reinvested in the business ". While $49.3m stated as total consideration from the sale so far the announcement is silent as to the value of that quota in the current financial statements, presumably under " Intangibles ".

Surprised that now that Ngai Tahu is a significant holder this further privatisation has occurred as I would have thought that action was counter to their long term aspirations. I recall that Sanford relatively recently divested Pelagic quota being fished out of Tauranga, so effectively we have a major fishing entity selling down to focus on growing their salmon and mussels business. The NZK troubles over an extended period are a flag warning that isn't an easy ask!

[Aaron]

I probably do not know enough about the movement of quota but it always scares me when they sell some quota because I imagine you are unlikely to ever be able to buy it back. You can always lease it.
I think the last CEO might have got his marching orders after selling quota they could have fished themselves.

I like dividend paying companies but hopefully the lack of dividend is offset by growth over the long term. The salmon farms might have less competition if the share price of NZ salmon is any indication about the future of the company.

[iceman]

Announced today to NZX that Sanford selling down crayfish quota in the deep south, with more to come ( CRA2 - where is that located? ). Value to be " reinvested in the business ". While $49.3m stated as total consideration from the sale so far the announcement is silent as to the value of that quota in the current financial statements, presumably under " Intangibles ".

Surprised that now that Ngai Tahu is a significant holder this further privatisation has occurred as I would have thought that action was counter to their long term aspirations. I recall that Sanford relatively recently divested Pelagic quota being fished out of Tauranga, so effectively we have a major fishing entity selling down to focus on growing their salmon and mussels business. The NZK troubles over an extended period are a flag warning that isn't an easy ask!

CRA2 is Hauraki Gulf to Bay of Plenty. I am astonished that they are selling all their crayfish quota. As you pointed out, they sold all their pelagic assets in the Pacific and in Tauranga recently and worst of all (in my view) they sold their hoki quota in Tasmania, a very strong fishery.
The focus is not solely on salmon & mussels but also on their deepwater fishing which is badly managed and needs a real kick up the butt. Until that's done, it will keep bleeding. Selling assets is not the solution.

[ronaldson]

Thanks Iceman.

I looked at the NZK thread ( I am not a holder ) and it crossed my mind that a merger with SAN might be a good option, and give scale on a combined basis. Alternatively SAN now has funds to T/O?

[iceman]

Thanks Iceman.

I looked at the NZK thread ( I am not a holder ) and it crossed my mind that a merger with SAN might be a good option, and give scale on a combined basis. Alternatively SAN now has funds to T/O?

I don't think so. NZK has no value but SAN's Stewart Island based salmon operation has got great potential and they must be doing very well down there with the current very high salmon prices https://salmonprice.nasdaqomxtrader.com/public/report;jsessionid=CC939B90BC0051968F8BE19AA49E8FDC ?0

(I also posted this link on the NZK thread)

[ronaldson]

Strange how you forget things. I reverted to the Continuous Disclosure announcement made on 10 February this year. Includes the following:-

" Strong demand in key markets sees salmon sales volume up 47% verses pcp. Have also cleared remaining frozen stock in this period. "

That is consistent with Iceman's post above.

CEO also noted " we have seen warmer-than-usual waters in our Big Glory Bay salmon farm for January " and that had impacted salmon mortalities. So even Stewart Is not immune from risk.

Also signaled San was exploring options for its crayfish quota, which it fishes and manages through third parties, " which may result in its sale". A decision was intended to be reached before the April start of the quota year for that species.

We could debate NZK's value but if it has any it is an existing operator which would benefit most.

[winner69]

Sanford’s shareholding represented 0.3% of CRA7 and 2.3% of CRA8 and they got just about $50m

Does that imply the value of these quota in total is more than $3 billion

How many cray can you catch for this

[BlackPeter]

Thanks Iceman.

I looked at the NZK thread ( I am not a holder ) and it crossed my mind that a merger with SAN might be a good option, and give scale on a combined basis. Alternatively SAN now has funds to T/O?

merger SAN / NZK? You mean something equivalent to a "bad bank" where all the uninvestable stuff likely to blow up is concentrated to allow a controlled explosion or defusion?

Sad times ... I used to hold for a short time NZK (short after IPO - and sold out with a small gain) and I hold SAN for a longer time (and sold out with a small loss) - but at this stage I see both of them as basket cases ... though for slightly different reasons.

NZK did ignore global warming (dinosaurs on board?) ... and SAN transitioned some time ago from a really well manged company to a really badly managed company. Just wondering - was this when the highly praised Volker Kuntsch came on board?

Anyway - great industry and two great examples of how not to run successful companies.

[ralph]

Sanford’s shareholding represented 0.3% of CRA7 and 2.3% of CRA8 and they got just about $50m

Does that imply the value of these quota in total is more than $3 billion
Sanford chief executive Peter Reidie said the lobster quota "did not provide the best return on investment" and proceeds from the sale would be reinvested in the business.
"It will ultimately help improve shareholder value by contributing to the significant investment required over the next five years to meet our primary strategic outcomes," he said.
A good move for shareholders
How many cray can you catch for this

Sanford chief executive Peter Reidie said the lobster quota "did not provide the best return on investment" and proceeds from the sale would be reinvested in the business."It will ultimately help improve shareholder value by contributing to the significant investment required over the next five years to meet our primary strategic outcomes," he said.
A positive move imho for the business

[iceman]

Sanford chief executive Peter Reidie said the lobster quota "did not provide the best return on investment" and proceeds from the sale would be reinvested in the business."It will ultimately help improve shareholder value by contributing to the significant investment required over the next five years to meet our primary strategic outcomes," he said.
A positive move imho for the business

Why ? What does the quoted comment from the CEO even mean ? Where is the money going ? Much of the remaining business is delivering very poor returns.

[hogie]

Why ? What does the quoted comment from the CEO even mean ? Where is the money going ? Much of the remaining business is delivering very poor returns.

Looks to me like a "downsize" with no indication of where the money might be better spent ... I think the company needs to give shareholders more visibility for sure!

[iceman]

Looks to me like a "downsize" with no indication of where the money might be better spent ... I think the company needs to give shareholders more visibility for sure!

This is what worries me, an enforced "downsize" to stop bleeding in the business. . I know they are not managing their biggest operation, deepwater fishing, very well and wonder if the money is going there. It probably should, but then we need to see what they're doing with it and will it fix their problems !. The salmon farming operation is in dire need of a huge investment, so the money could be going there as well. But we don;t know. They have sold lots of assets in the last few years , including some really good ones and I can not see that it has gone into productive use.

DISCL: Not a holder for last 2-3 years

[winner69]

I see the SAN share price was about 8 bucks a few years ago

Was that when they were making heaps and things looked bright.

Seem a bit of a disaster these days

[winner69]

Just skimmed through the first couple of pages on this thread

Nothing seems to have changed much in the last 17 years - even the share price is much the same

[iceman]

I see the SAN share price was about 8 bucks a few years ago

Was that when they were making heaps and things looked bright.

Seem a bit of a disaster these days

I hold some shares in a couple of fishing companies in Iceland. Here are 12 months graph for them and Sanford.:
https://www.landsbankinn.is/markadir/hlutabref/svn
https://www.landsbankinn.is/markadir/hlutabref/brim
https://www.directbroking.co.nz/DirectTrade/dynamic/quote.aspx?qqeg=NZ&qqsc=san&QuickQuote=Go


The industry World wide is doing pretty well at the moment. The 2 Icelandic companies would show SAN up even worse if I could show you the chart going back 3 years or so, but 1 of them only listed last year and the other changed name and I can't find the history. Meanwhile, as you pointed out, SAN has had a terrible 5 years or more https://www.directbroking.co.nz/DirectTrade/dynamic/quote.aspx?qqeg=NZ&qqsc=san&QuickQuote=Go

p.s. just realised the copying of the links from Direct Broking don't work properly. Select "charts" and timeframe you want to see what I mean.

[ralph]

Sanford chief executive Peter Reidie said the lobster quota "did not provide the best return on investment" and proceeds from the sale would be reinvested in the business.
"It will ultimately help improve shareholder value by contributing to the significant investment required over the next five years to meet our primary strategic outcomes," he said.

There is a lot of ways of looking at this ,dependent on your leanings etc negative positive I think with Peter taking over from Volker and the involvement of ngai thai they will be looking to take positive moves forward and from the statement he is not giving anything away and would be a fool to do so .
Hey everyone knows its been downhill for a long while with Volker & covid I see this as a good entry point or topping up point

[Aaron]

Just skimmed through the first couple of pages on this thread

Nothing seems to have changed much in the last 17 years - even the share price is much the same

Not a growth company then?

Used to pay a pretty reliable dividend at a reasonable yield , I had assumed the dividend would rise with inflation but maybe not.

Share price unchanged for decades looking at Phadreus's first post on this thread although the last 10 years has seen a rise to $8 and back down again. I wonder if it tracks Volker's time at the helm. All piss and wind about marketing and high end restaurants blah blah while selling quota to keep things running. Investors got excited but the dream never turned into reality. At the current 0% yield it makes me wonder if it is worth hanging on.
7%-8% yield is my minimum hurdle for a dividend stock.
That said 7-8% was from an earlier age where yield meant something and central bank driven capital gain wasn't the only game in town.

[iceman]

Not a growth company then?

Used to pay a pretty reliable dividend at a reasonable yield , I had assumed the dividend would rise with inflation but maybe not.

Share price unchanged for decades looking at Phadreus's first post on this thread although the last 10 years has seen a rise to $8 and back down again. I wonder if it tracks Volker's time at the helm. All piss and wind about marketing and high end restaurants blah blah while selling quota to keep things running. Investors got excited but the dream never turned into reality. At the current 0% yield it makes me wonder if it is worth hanging on.
7%-8% yield is my minimum hurdle for a dividend stock.
That said 7-8% was from an earlier age where yield meant something and central bank driven capital gain wasn't the only game in town.

I would only buy into SAN if they stopped dividends for a few years and spent the much needed several hundred of millions required to get the business up to scratch (vessels and production facilities) and had a clean out of management and board. I suppose that basically means I will not become a SAN holder again in the near future !!
DYOR.

I bought into Volker's ideas and rode a good rise in SP. But I sold out when he repeatedly failed to deliver. In my view, he failed because he did not surround himself with the right people to implement his ideas. They are still there.

[ralph]

Not a growth company then?

Used to pay a pretty reliable dividend at a reasonable yield , I had assumed the dividend would rise with inflation but maybe not.

Share price unchanged for decades looking at Phadreus's first post on this thread although the last 10 years has seen a rise to $8 and back down again. I wonder if it tracks Volker's time at the helm. All piss and wind about marketing and high end restaurants blah blah while selling quota to keep things running. Investors got excited but the dream never turned into reality. At the current 0% yield it makes me wonder if it is worth hanging on.
7%-8% yield is my minimum hurdle for a dividend stock.
That said 7-8% was from an earlier age where yield meant something and central bank driven capital gain wasn't the only game in town.
Hit the nail on the head there Aaron ,Volkers ideas (all piss and wind ) a thing of the past now they can move forward without that bullcrap & covid .

[Ottiehund]

Hit the nail on the head there Aaron ,Volkers ideas (all piss and wind ) a thing of the past now they can move forward without that bullcrap & covid .

I actually have the opposite view - I got the impression the 'marketing' changes proposed contributed to Volkers move? - selling direct to end users and cutting out distributors, all sounds good in theory, save a margin, develop a end user relationship etc however we (NZ as a whole, Sanford even smaller) are a small and for many items seasonal producer and working with a distributor in a place like the US gives buyers the benefit of consolidating their purchases year around and from a range of products. Much preferable to the buyer over dealing direct with a small seller from across the globe who can supply some products some of the time, albeit good products. This proposed change (is it happening now, I don't know) was short sighted in my view and shows also a lacl of industry experience at board level (and maybe at Sanford marketing level as presumably they presented or supported the idea). That will have improved with NT coming on board.

I had the impression these changes were not supported by Volker and that was one of the reasons that contributed to his leaving. I also have the opinion the new CEO may be a 'safe pair of hands' but not much more than that, pretty underwhelming for a public company, and essentially may have been selected as he could be a puppet for the board. And remember after his appointment it came out that 2 board members have been in business with the new CEO and that was never disclosed - it appears the disfunction stems from the top down.

CRA quota is a niche fishery and I can understand them selling it (to concentrate on areas of the business they can control presumably?) however as has been said above once sold it will be hard to buy back, and it is a valuable asset and one which will have cost them little.

[ronaldson]

I have always thought that much of NZ's seafood production presently on-sold in o/seas markets could be marketed at minimal cost and with the best price discovery by utilising an auction platform such as is operated by Fonterra for dairy products - indeed the actual Fonterra platform could probably be used with only minor adaption, while maintaining individual corporate branding of seafood product wholesaled in that manner.

Currently every producer is incurring significant overhead doing their own thing. Now that Ngai Tahu are a stakeholder, and with maori investment in Sealord, you would think some fresh thinking might emerge that could advantage all industry participants!

[ralph]

Hey N T will not just park up there, things will change/happen and are

[BlackPeter]

I have always thought that much of NZ's seafood production presently on-sold in o/seas markets could be marketed at minimal cost and with the best price discovery by utilising an auction platform such as is operated by Fonterra for dairy products - indeed the actual Fonterra platform could probably be used with only minor adaption, while maintaining individual corporate branding of seafood product wholesaled in that manner.

Currently every producer is incurring significant overhead doing their own thing. Now that Ngai Tahu are a stakeholder, and with maori investment in Sealord, you would think some fresh thinking might emerge that could advantage all industry participants!

Auction platforms are great for selling standardised stuff. This is true for bulk milk powder, but not for premium fish fillets ...

[Ottiehund]

Auction platforms are great for selling standardised stuff. This is true for bulk milk powder, but not for premium fish fillets ...

I agree - auction likely suits commodity type products best (maybe whole squid or Hoki H&G for example) but not so suitable for 'added value' type products like graded fillets, or portions, etc. Having said that it appears there remains clearly room for improvement from NZ side however.

[Waikaka]

Might stick my oar in again.

Sanford is the largest seafood company in NZ.

Sanford has book value $386 million dollars worth of quota. Market value is almost a billion. It is the largest quota owner in NZ by volume. It has $100 million worth of marine farm licenses with 225 aquaculture farms and 2 salmon hatcheries.

Market cap is 424 million.

Share price is well below what it should be, largely based on its current earnings which I think is largely driven down by hopefully temporary Covid impacts (tight labour market, supply chains, less restaurant dinning)

I don't think it is good to sell quota to prop up the business but only small amount of quota at the edges so not worried at this stage. I would prefer no dividends for longer rather than getting rid of Quota.

Happy to be loading up at these prices (like Masfen +7%, Cushings (1.3%) and Ngai Tahu 19.9%) and see what happens in a few years.

[ronaldson]

I asked the CEO of Sealord why they are continuing to use Russian crew in the current geopolitical circumstances, when other NZ companies have taken direct action with regard to their Russian connections? That and related questions were not answered, with the exception of one question where I stated specifically " Why does Sealord not operate using NZ crews ( I am a shareholder in Sanford, and they do )? ".

His answer :- Sealord is in the process of updating its fleet and has for many years to assist in the process of using NZ fishers, many years ago all the deepwater quota was caught on predominantly foreign crewed vessels. Sealord now fishes predominantly with NZ crew and as of today Sealord now has only one foreign crewed vessel in it's fleet and as I have stated on record we are trying to invest in one more new vessel which would enable this vessel to leave our shores, but that takes time as a $100m investment. We recently gave up the charter of one of these vessels from our fleet (2021). In saying that there simply put isn't enough NZers willing to take on deep sea fishing roles and all companies are sailing shorthanded and all ( including Sanford ) are in the process of applying for foreign crew to supplement their NZ crew. It may interest you to know that Sanford has for many years sold significant amounts of their annual catch entitlement to Doug Wan, which utilises 100% Korean crewed fishing vessels and has used Maruha vessels to catch some of its pelagic quota, these vessels are crewed by Russian and Ukrainian crew 100%, and indeed are doing such this year. "

So a little bit of background but no comment on the real moral and ethical concerns that my range of questions addressed except " Many queries, most of which I would deem confidential to the business and the shareholders. "

But are they really?

[iceman]

Thanks for sharing ronaldson. I think they are all in a very difficult situation. It is extremely difficult to get reliable crew that turn up on time for the trips and work as required and it is not because of low wages as is always claimed. There are great opportunities in the industry for young people willing to work hard and do stints away from home. There just don;t seem to be many around and haven't been for years. It is sad to see Sealord's most recent newbuild, an up to date trawler with great accommodation and condition onboard, crewed almost entirely with foreigners.
Talley's have always been the only big seafood company fully or near fully crewed by New Zealanders.

[Jaa]

Thanks for sharing ronaldson. I think they are all in a very difficult situation. It is extremely difficult to get reliable crew that turn up on time for the trips and work as required and it is not because of low wages as is always claimed. There are great opportunities in the industry for young people willing to work hard and do stints away from home. There just don;t seem to be many around and haven't been for years. It is sad to see Sealord's most recent newbuild, an up to date trawler with great accommodation and condition onboard, crewed almost entirely with foreigners.
Talley's have always been the only big seafood company fully or near fully crewed by New Zealanders.

Interesting, implies that if Talley's can do it then the others could too if they really wanted too?

I always think saying pay isn't important is misleading. While not the only thing people consider, pay enough and people will consider anything.

Great questions Ronaldson. Maybe a commitment to only hire Ukrainians and other non-Russian foreigners in the next season would be an achievable step?

Was also ridiculous that the Russian foreign fishermen were deemed so important to NZ they got special access to MIQ and even their own facility (where they broke the rules anyway). Privileges not given to ANY other industry or to ordinary Kiwis. Classic regulatory capture by the industry. Should have just left the fish in the sea to multiply for a year.

[iceman]

Interesting, implies that if Talley's can do it then the others could too if they really wanted too?

I always think saying pay isn't important is misleading. While not the only thing people consider, pay enough and people will consider anything.

Great questions Ronaldson. Maybe a commitment to only hire Ukrainians and other non-Russian foreigners in the next season would be an achievable step?

Was also ridiculous that the Russian foreign fishermen were deemed so important to NZ they got special access to MIQ and even their own facility (where they broke the rules anyway). Privileges not given to ANY other industry or to ordinary Kiwis. Classic regulatory capture by the industry. Should have just left the fish in the sea to multiply for a year.

Just want to be clear Jaa as you have quoted my post, that I never said “pay isn’t important”. Quite to the contrary, I think it is extremely important !

[ralph]

Interesting, implies that if Talley's can do it then the others could too if they really wanted too?

I always think saying pay isn't important is misleading. While not the only thing people consider, pay enough and people will consider anything.

Great questions Ronaldson. Maybe a commitment to only hire Ukrainians and other non-Russian foreigners in the next season would be an achievable step?

Was also ridiculous that the Russian foreign fishermen were deemed so important to NZ they got special access to MIQ and even their own facility (where they broke the rules anyway). Privileges not given to ANY other industry or to ordinary Kiwis. Classic regulatory capture by the industry. Should have just left the fish in the sea to multiply for a year.

Most New Zealand industry's if not all rely on foreign /immigrant , general cheap immigrant labour as can clearly be seen by the lack of workers to fill jobs at this present time the fishing industry is one of the highest .
Nothing new hear & I do not see any reason to treat them on a racist basis they are all fishermen working together .

[Jaa]

Most New Zealand industry's if not all rely on foreign /immigrant , general cheap immigrant labour as can clearly be seen by the lack of workers to fill jobs at this present time the fishing industry is one of the highest .
Nothing new hear & I do not see any reason to treat them on a racist basis they are all fishermen working together .

Nothing to do with racism, it is about defending NZ's commitment to collective security, the foundation of NZ's foreign policy for 100 years. This demands that if you attack your smaller neighbours unprovoked you need to pay a high price. It's called deterrence and has helped build our modern prosperous world.

I do agree that NZ's economy over the last 20 years is increasingly going the way of the richer South East Asian and middle eastern nations with a resident managerial class dependent on imported foreign labour (RSE, fishermen, backpackers etc).

Unlike other countries this hasn't been debated much in NZ and seems to be happening by stealth supported by both major political parties. Such a policy comes with plenty of ethical and practical trade offs and there are alternatives.

[Jaa]

Just want to be clear Jaa as you have quoted my post, that I never said “pay isn’t important”. Quite to the contrary, I think it is extremely important !

Fair enough, I am guilty of trying to parse your comments. Pay is after all why anyone "works" !

Looking at Sealord's career page (https://www.sealord.com/working-at-sealord/learn-and-grow/), they talk the talk about apprenticeships and have a nice brochure that just refers you back to the career page where the roles advertised are either for people with experience or for causal positions. Nothing actionable like salary ranges or dates for training intakes etc.

Sanford don't even mention an apprenticeship program on their site (https://careers.sanford.co.nz/jobs/) and lots of the roles advertised are fixed term contract or on a causal basis. Hard to attract quality people like that.

Compare both of these companies to Talley's and its obvious why Kiwis are more attracted (https://www.talleys.co.nz/careers/deepsea-careers) to work for them. They have a clear brochure with career pathways including expected salary wages (45k-70k for entry level crew), big hiring now text and invitation for anyone to apply via a simple web form.

[TFA]

Fair enough, I am guilty of trying to parse your comments. Pay is after all why anyone "works" !

Looking at Sealord's career page (https://www.sealord.com/working-at-sealord/learn-and-grow/), they talk the talk about apprenticeships and have a nice brochure that just refers you back to the career page where the roles advertised are either for people with experience or for causal positions. Nothing actionable like salary ranges or dates for training intakes etc.

Sanford don't even mention an apprenticeship program on their site (https://careers.sanford.co.nz/jobs/) and lots of the roles advertised are fixed term contract or on a causal basis. Hard to attract quality people like that.

Compare both of these companies to Talley's and its obvious why Kiwis are more attracted (https://www.talleys.co.nz/careers/deepsea-careers) to work for them. They have a clear brochure with career pathways including expected salary wages (45k-70k for entry level crew), big hiring now text and invitation for anyone to apply via a simple web form.

Not sure that any one company of these companies mentioned is having more success in attracting staff than the others. All are desperately short of workers which is not just a fishing industry issue.
There are other issues that are important in deciding a desirable employer ESG. The companies mentioned have different track records on this.

[bull....]

algie bloom issues

Sanford general manager of mussels Mike Mandeno said on Friday five of their 19 mussel growing areas in the Marlborough Sounds were currently closed

https://www.stuff.co.nz/business/farming/128554226/marlborough-mussel-farms-put-harvesting-on-hold-following-toxic-algae-bloom

[BlackPeter]

algie bloom issues

Sanford general manager of mussels Mike Mandeno said on Friday five of their 19 mussel growing areas in the Marlborough Sounds were currently closed

https://www.stuff.co.nz/business/farming/128554226/marlborough-mussel-farms-put-harvesting-on-hold-following-toxic-algae-bloom


Looks like NZK is not the only company impacted by global warming.

Maybe time for the dinosaurs to wake up ...

[Ferg]

From the article:


Sanford could continue operating by harvesting in places unaffected by the bloom such as Golden Bay, Stewart Island and Banks Peninsula and as a result, were not seeing any significant impact on production or export, Mandeno said.

“Algal blooms are something we are used to managing as mussel farmers and this one is no different.”

[iceman]

From the article:

Yes Ferg it really is not a serious concern for SAN. They should be creaming it from their salmon operations with the current all time high prices and big demand

[Balance]

Heard from a fishmonger this morning to expect prices of fish to go through the roof due to the price of diesel.

The fishing companies are barely covering costs at current prices.

Problem is that the overseas markets, especially China, are not prepared to accept the price increases so the likes of Sanford have a choice of making losses, stop fishing and/or sock it to the local market.

Tough times ahead for the industry.

[ralph]

Heard from a fishmonger this morning to expect prices of fish to go through the roof due to the price of diesel.

The fishing companies are barely covering costs at current prices.

Problem is that the overseas markets, especially China, are not prepared to accept the price increases so the likes of Sanford have a choice of making losses, stop fishing and/or sock it to the local market.

Tough times ahead for the industry.

The same price Increase's apply to all products we are all going to have to suck it up its called Inflation.
Also Indigenous green lipped mussels thrive naturally in the sounds ,unlike king salmon bp

[Balance]

The same price Increase's apply to all products we are all going to have to suck it up its called Inflation.
Also Indigenous green lipped mussels thrive naturally in the sounds ,unlike king salmon bp

Yes, it is called inflation and only stocks whose products and services have pricing power and can pass on cost increases are going to do well in an inflationary environment will do well.

Sanford imo is not one of them.

[Sideshow Bob]

Interim Results Announcement - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/392297)

Sanford Limited (NZX: SAN) has reported a solid recovery in the first half of its 2022 financial year, with Adjusted (underlying) Earnings Before Interest and Tax (Adjusted EBIT) of $19.2 million for the six months to 31 March. This represents a 79.4% increase on Adjusted EBIT from the same period last year ($10.7 million).

Total revenue was $270.9 million for the period, a 16.0% increase on the same period in 2021 ($233.5 million).

Statutory net profit after tax (NPAT) for the period was $6.1 million, 55.5% behind last year’s interim result of $13.8 million which included a one-off gain of $13.4 million from the sale of non-core property.

Sanford is New Zealand’s largest and oldest seafood company and has a diverse range of interests across fishing and aquaculture.
Key highlights from the first half of the 2022 financial year include:

• The profit contribution from Sanford’s wildcatch division is up 108.4% versus the prior comparable period, driven by a significant lift in global demand for whitefish
• Maintenance of salmon profitability through increasing revenues by 35.9% to compensate for additional cost in feed, freight and some increased investment to minimise a minor increase in mortality due to warmer water temperatures
• Sanford’s balance sheet is strong, with net debt at $175.6 million and around $90 million in headroom with current banking facilities
• Significantly improved operating cashflows of $35.8 million versus $4.5 million for the same period last year

CEO Peter Reidie says the result is pleasing, although challenges continue on the domestic front.

[ralph]

That's fair enough Balance I disagree ,wild caught fish , green lipped mussels and Salmon in my Opinion are premium product's and especially wild caught N Z fish , this is going to get more expensive rarer and more sought after ,and so it should for the health conscious and those willing to pay for fine quality fish/food .
Its not like we can just deforest another hectare and put cows on it

[Aaron]

Yes, it is called inflation and only stocks whose products and services have pricing power and can pass on cost increases are going to do well in an inflationary environment will do well.

What companies do you think have pricing power?

[Balance]

What companies do you think have pricing power?

Companies in essential, oligopolistic and monopolistic industries.

Companies with strong market positioning.

[BlackPeter]

The same price Increase's apply to all products we are all going to have to suck it up its called Inflation.
Also Indigenous green lipped mussels thrive naturally in the sounds ,unlike king salmon bp

Your statement is beside the point.

1) while green lipped mussels are indigenous, increasing water temperatures are not. The environment of the mussles is changing, which may or may not be good for them.

2) No matter whether green lipped mussles are thriving in warmer waters (which may or may not be true) ... the problem are increased algae blooms - and they do love warmer waters. These algae may or may not agree with the mussles, but they don't agree with the people who want to eat these mussles, i.e. turn them unsaleable.

Do you see the problem? Most customers want to eat mussles which do agree with them, no matter whether they are indigenous or not :p ;

[ralph]

Ha :p,
You get green lipped mussels in warmer and colder water in the north & south Island and algal blooms toxins etc are a permanent hazard always have been hazard in there natural environment .
Nothing in comparison to taking a species that is non indigenous to an environment that is alien to there origins and has always been to warm .
most customers understand the origins of this species the green lipped mussels in its natural environment and know its a lot safer buying through a company like Sanford's with regular monitoring & a proven history in this field

[hogie]

Mr Market seems to think the financial results are reasonable ... a good sign for SAN which has struggled along for the past couple of years!

[bull....]

should be more fish in the ocean soon , cost of diesel if it keeps going up will make fishing a loss making activity if you dont get a good haul.

[BlackPeter]

should be more fish in the ocean soon , cost of diesel if it keeps going up will make fishing a loss making activity if you dont get a good haul.

No doubt the world is running out of oil ... and therefore price of diesel will keep going up - forever.

Same thing with the stone age, it ended because the world did run out of stones and humans could not pay for them anymore.

Oops, did it?

[ralph]

Some damn fool Invented the wheel ! it was all down hill then

[Sideshow Bob]

“Good” Third Quarter, Despite Lingering Covid Impacts - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/396325)

“Good” Third Quarter, Despite Lingering Covid Impacts

3/8/2022, 8:30 amMKTUPDTESanford Records “Good” Third Quarter, Despite Lingering Covid Impacts

New Zealand seafood company Sanford Limited (NZX:SAN) has released a third quarter update for 2022, showing its wildcatch division as the standout performer for the period.

Overall sales volumes are up 14.4% versus Q3 2021. Other notable results include:

• Wildcatch: pricing up 7.6% on Q3 2021. Sales volumes at 16.6k GWT for the quarter are better than the prior comparable period (14.2k GWT in Q3 2021) and best quarter of 2022 so far.
• Greenshell Mussels: least well performing division, due to labour constraints impacting ability to supply. Pricing in this division up in Q3 by 7.4% versus the prior comparable period.
• Salmon: continues to trade at consistent levels overall to the prior comparable period. A strong quarter on pricing, up 23% on Q3 2021. Inventory remains at very low levels.

[ralph]

Pricing up ,I like it Bob

[ronaldson]

At last, an article in today's NZ Herald regarding the use of fly in / fly out Russian crews on NZ registered vessels operated by local fishing companies (not Sanford, but Sealord and Independent Fisheries) in spite of our sanctions and other legal framework, which are completely ineffectual in context. This shows how hollow the Ardern Government response to the war in Ukraine actually is, and the lack of moral fibre and backbone demonstrated by the companies concerned.

I have lobbied Herald journalists for some time to shed light on this issue and at last one has done so. Hopefully there will be further reporting in due course.

[iceman]

At last, an article in today's NZ Herald regarding the use of fly in / fly out Russian crews on NZ registered vessels operated by local fishing companies (not Sanford, but Sealord and Independent Fisheries) in spite of our sanctions and other legal framework, which are completely ineffectual in context. This shows how hollow the Ardern Government response to the war in Ukraine actually is, and the lack of moral fibre and backbone demonstrated by the companies concerned.

I have lobbied Herald journalists for some time to shed light on this issue and at last one has done so. Hopefully there will be further reporting in due course.

Agree. It is outrageous that Sealord & Independent continue with their Russian businesses, as nothing has changed in the World. While it has nothing to do with Sanford, it is pertinent to comment on this thread as this issue has the potential to severely affect the whole NZ fishing industry in a negative way. Well done for your lobbying ronaldson.
Here is a link to the paywalled article https://www.nzherald.co.nz/nz/long-standing-use-of-russian-fishing-crews-on-new-zealand-flagged-boats-raises-questions-as-war-rages-in-ukraine/7ZH2R567XTS7JACL66ALSNHAJ4/

[ralph]

I disagree the war in Russia is between them and we should not get involved ,plus sanctions are going to be the wests especially Europe's downfall .
Peace talks are what is needed not more bullying

[TFA]

At last, an article in today's NZ Herald regarding the use of fly in / fly out Russian crews on NZ registered vessels operated by local fishing companies (not Sanford, but Sealord and Independent Fisheries) in spite of our sanctions and other legal framework, which are completely ineffectual in context. This shows how hollow the Ardern Government response to the war in Ukraine actually is, and the lack of moral fibre and backbone demonstrated by the companies concerned.

I have lobbied Herald journalists for some time to shed light on this issue and at last one has done so. Hopefully there will be further reporting in due course.

Sorry I disagree. It would be extremely harmful for those companies. If enacted, those companies would have to tie the vessels up and pay the ongoing leases and wage costs to the Russian/Ukranian owners and crews. There are no workers in NZ with the desire let alone skills to crew those vessels. As well as being devastating for those companies, it would lead to all those fish not being caught which would not be good given fragility of global food supply situation/rampant inflation etc.
Therefore believe such measures would be more harmful than helpful in the fight against Putin.

I agree it would be great to not be dependent on foreign workers, but NZ has a labour crisis for any worker, let alone highly specialised and complex situations such as these situations.

[BlackPeter]

I disagree the war in Russia is between them and we should not get involved ,plus sanctions are going to be the wests especially Europe's downfall .
Peace talks are what is needed not more bullying

Absolutely - So, if your neighbor is burning down your house, raping your wife and killing your children, than I take it nobody should come and help you against this neighbor? Certainly - nobody should punish him. Maybe arrange a community conference where your neighbor might promise to stop killing your children if you offer to serve him a lifetime as a slave?

I am sure you would be happy as Larry, wouldn't you? - or are you just a hypocrite?

Putin is sending mass murders and rapists into Ukraine and destroying countless innocent lives and livelihoods.

What a disgusting suggestion to just organise a peace conference with one of the worst monsters Earth has seen and let him get away.

What kind of person are you? Or are you one of his paid bots?

[ralph]

I don't want to denigrate this thread by replying to your latest loony rant ,this is after all about Sandford's the company & seafood Industries .
Have a nice day Black P .

[ronaldson]

Aren't there many countries closer to NZ capable of supplying crews for these vessels? Who would be delighted to serve under NZ labour laws and conditions? So why use Russians, except that we got used to doing so and its convenient to continue?

And isn't the point of any sanctions regime to make life harder for ordinary people, so as to encourage change? So why on the one hand apply sanctions and on the other sympathise and turn a blind eye?

[SailorRob]

Aren't there many countries closer to NZ capable of supplying crews for these vessels? Who would be delighted to serve under NZ labour laws and conditions? So why use Russians, except that we got used to doing so and its convenient to continue?

And isn't the point of any sanctions regime to make life harder for ordinary people, so as to encourage change? So why on the one hand apply sanctions and on the other sympathise and turn a blind eye?


We have hundreds of teenage ram raiders who could do with a decent 6 Month stint in the Southern Ocean on a fishing boat.

[ralph]

I would hope Sanford's like any other company will have mitigation in place for such eventualities .
And hopefully not ram raiders or the like .
https://www.hananuiaquaculture.co.nz/the-project
I see the ngaithai are going for the big one & looks to be a done deal ,with them already having a big stake in Sanford's could this end up being a collaborative venture surely they will be using Sanford's expertise & abilities in this location .

[iceman]

I would hope Sanford's like any other company will have mitigation in place for such eventualities .
And hopefully not ram raiders or the like .
https://www.hananuiaquaculture.co.nz/the-project
I see the ngaithai are going for the big one & looks to be a done deal ,with them already having a big stake in Sanford's could this end up being a collaborative venture surely they will be using Sanford's expertise & abilities in this location .

Good to see such project planning, even though I have a big question mark on offshore farms in rough and relatively unprotected waters. No doubt there will be collaboration with SAN if this goes ahead.
I hope they have done their homework well with the right expertise employed.

[ralph]

Good to see such project planning, even though I have a big question mark on offshore farms in rough and relatively unprotected waters. No doubt there will be collaboration with SAN if this goes ahead.
I hope they have done their homework well with the right expertise employed.

Yes I agree it certainly does get wild down there off Stewart Island ,but sheltered spots are no longer an option look at king salmon more of a pauper now

[TFA]

Aren't there many countries closer to NZ capable of supplying crews for these vessels? Who would be delighted to serve under NZ labour laws and conditions? So why use Russians, except that we got used to doing so and its convenient to continue?

And isn't the point of any sanctions regime to make life harder for ordinary people, so as to encourage change? So why on the one hand apply sanctions and on the other sympathise and turn a blind eye?

It would be virtually impossible to get other workers with appropriate skills in the short/medium term and they wouldn't have the experience of working NZ waters. Even if you could find them, the government would have to let them in. Many industries in NZ are crying out for workers from overseas but this government won't let them in - policy decision. As just one example, healthcare system is imploding because we can't get workers, 3000 nurses short alone. For few overseas nurse that are interested, it takes months/years and massive hoops to jump through to issue visa's.

The point of sanctions is to hurt the offending country more than the country implementing the sanctions.

Also, these workers are probably from Crimea. So are they Russian or Ukranian?

[BlackPeter]

It would be virtually impossible to get other workers with appropriate skills in the short/medium term and they wouldn't have the experience of working NZ waters. Even if you could find them, the government would have to let them in. Many industries in NZ are crying out for workers from overseas but this government won't let them in - policy decision. As just one example, healthcare system is imploding because we can't get workers, 3000 nurses short alone. For few overseas nurse that are interested, it takes months/years and massive hoops to jump through to issue visa's.

The point of sanctions is to hurt the offending country more than the country implementing the sanctions.

Also, these workers are probably from Crimea. So are they Russian or Ukranian?

Hmm - if its so hard to get a visa, I find it particularly disgusting that our government seems to make an exception for the people who attack innocent neighbors and helps them to pay to commit further war crimes ... so you say its easier for Russians to get a visa than for workers for other countries? Is this what you are saying?

Plenty of Indonesian and Philippine crews around who would be happy to do the job.

Re your question whether crews from Crimea are Ukrainian or Russian? Easy test: If they come with a Ukrainian passport and transfer their wages into an Ukrainian bank account, than they clearly are Ukrainians. If they come however with a Russian passport and try to transfer their wages to a Russian bank ...

Nough said.

I find it quite disgusting that a NZ company helps funding Putins ugly war by employing his people ... and for my bit I will stop buying any Sanford fish until they stop to fund Putin allowing him to commit more crimes in Ukraine.

[ralph]

It would be virtually impossible to get other workers with appropriate skills in the short/medium term and they wouldn't have the experience of working NZ waters. Even if you could find them, the government would have to let them in. Many industries in NZ are crying out for workers from overseas but this government won't let them in - policy decision. As just one example, healthcare system is imploding because we can't get workers, 3000 nurses short alone. For few overseas nurse that are interested, it takes months/years and massive hoops to jump through to issue visa's.

The point of sanctions is to hurt the offending country more than the country implementing the sanctions.


Also, these workers are probably from Crimea. So are they Russian or Ukranian?



Totally agree T F A well put ,Sanctions are crippling Europe and the west permanently

[Aaron]

At last, an article in today's NZ Herald regarding the use of fly in / fly out Russian crews on NZ registered vessels operated by local fishing companies (not Sanford, but Sealord and Independent Fisheries) in spite of our sanctions and other legal framework, which are completely ineffectual in context. This shows how hollow the Ardern Government response to the war in Ukraine actually is, and the lack of moral fibre and backbone demonstrated by the companies concerned.

I have lobbied Herald journalists for some time to shed light on this issue and at last one has done so. Hopefully there will be further reporting in due course.

Hey BlackPeter before you get up on your high horse - re-read Ronaldson's post more carefully, I quote "NOT Sanford".

I think a Korean boat split in half and Sanfords have been trying to use as much NZ labour as possible since then.

[BlackPeter]

Hey BlackPeter before you get up on your high horse - re-read Ronaldson's post more carefully, I quote "NOT Sanford".

I think a Korean boat split in half and Sanfords have been trying to use as much NZ labour as possible since then.

Granted.

Looks like I can keep buying Sanford products and need to boycott Sealord. Shows however why it is not a good idea to post stuff in the wrong threads. This is the Sanford thread, why are we discussing Sealord and independent fisheries failures here?

[BlackPeter]

Totally agree T F A well put ,Sanctions are crippling Europe and the west permanently

What a load of B/S.

Giving in to Putins blackmail and sanctioning his war crimes would cripple the west permanently. Are you really proposing to give in to the demands of a Bully who is employing rapists and massmurderers only to have (for a short time) a bit easier life?

Boycotting them now causes only some temporary problems - and hey - Putin commands a country which in good times produced half of the GDP of Italy. By now its less. A dwarf on a global scale. Boycotting them would cripple nobody but only helps us to move faster to renewable energies ... and it would keep the globe much safer.

Just responding, but maybe we could put all this political stuff in future into the threads where it belongs?

[ralph]

Off market discussion's may suit you better to let off a bit of steam b p .
Otherwise the topic of this thread is Sanford's the company .
Cheerio black p

[BlackPeter]

Totally agree T F A well put ,Sanctions are crippling Europe and the west permanently


Off market discussion's may suit you better to let off a bit of steam b p .
Otherwise the topic of this thread is Sanford's the company .
Cheerio black p

Lol .......

[Waikaka]

Stake in SAN has been growing, been accumulating since Mar 2020 and down 12.3% at the moment. Buying more at these prices.

Pleased to see dividend restart, debt reduce, amount of inventory decrease and respectable operating cashflow despite the increase in input costs. Great that debt is reducing as it is starting to get more expensive.

Not pleased with earlier quota sales but happy they have a good range of product (mussels, salmon, wildcatch), mussels down this past year but then Salmon/wildcatch did better, nice way to even out a cyclical primary industry business.

[ronaldson]

Yes, a decent announcement in still difficult times. Dividend restart fully imputed, while relatively modest compared to pre-covid days, signals confidence and will effectively be a useful Christmas present for holders (like me) when actually paid in December.

[forest]

Just wondering what impact that quota sale had on de results. Was the amount of the sale made public?

[Ricky-bobby]

I have placed on my watchlist with the CEO from skellerup joining…

[iceman]

Just wondering what impact that quota sale had on de results. Was the amount of the sale made public?

Here is the announcement regarding the crayfish quota sale. Not sure what the profit was on the sale though

SAN
29/04/2022 08:55
GENERAL
PRICE SENSITIVE
REL: 0855 HRS Sanford Limited (NS)

GENERAL: SAN: Sale of Crayfish Quota in areas CRA7 and CRA8

29th April 2022

NZX Continuous Disclosure

Sanford Announces Sale of Crayfish Quota in areas CRA 7 and CRA 8

New Zealand seafood company Sanford Limited (SAN) has agreed the
unconditional sale of its spiny (red) rock lobster quota in Fisheries
Management Areas CRA7 and CRA8.

Sanford has reached an agreement to sell these quota holdings to Deltop
Holdings Limited, a subsidiary of Fiordland Lobster Company Limited, for a
total consideration of $49.3 million, with a completion date of 29 April
2022.

Sanford's shareholding represented 0.3% of CRA7 and 2.3% of CRA8.

The company is also considering the sale of its CRA2 quota holding. This
transaction is not considered material and an update will be provided in the
interim report.

Sanford CEO Peter Reidie says "we concluded that our lobster quota did not
provide the best return on investment and the value realised from this quota
sale will be reinvested in the business. It will ultimately help improve
shareholder value by contributing to the significant investment required over
the next five years to meet our primary strategic outcomes. These include the
growth of our salmon and mussel businesses and sustainable investment in
wildcatch operations."

[Ricky-bobby]

Here is the announcement regarding the crayfish quota sale. Not sure what the profit was on the sale though

SAN
29/04/2022 08:55
GENERAL
PRICE SENSITIVE
REL: 0855 HRS Sanford Limited (NS)

GENERAL: SAN: Sale of Crayfish Quota in areas CRA7 and CRA8

29th April 2022

NZX Continuous Disclosure

Sanford Announces Sale of Crayfish Quota in areas CRA 7 and CRA 8

New Zealand seafood company Sanford Limited (SAN) has agreed the
unconditional sale of its spiny (red) rock lobster quota in Fisheries
Management Areas CRA7 and CRA8.

Sanford has reached an agreement to sell these quota holdings to Deltop
Holdings Limited, a subsidiary of Fiordland Lobster Company Limited, for a
total consideration of $49.3 million, with a completion date of 29 April
2022.

Sanford's shareholding represented 0.3% of CRA7 and 2.3% of CRA8.

The company is also considering the sale of its CRA2 quota holding. This
transaction is not considered material and an update will be provided in the
interim report.

Sanford CEO Peter Reidie says "we concluded that our lobster quota did not
provide the best return on investment and the value realised from this quota
sale will be reinvested in the business. It will ultimately help improve
shareholder value by contributing to the significant investment required over
the next five years to meet our primary strategic outcomes. These include the
growth of our salmon and mussel businesses and sustainable investment in
wildcatch operations."

Do you think this is a good move? Salmon/mussels seem like a mix bag…. What are ur thoughts on the business Iceman?

[ronaldson]

The relevant information is set out on page 145 of the Annual Report for y/e 30 September 2022 - The sale of crayfish quota in CRA2, CRA7 and CRA8 (all of which apparently also included some annual catch entitlement (ACE) was for a total consideration of $52.7m giving rise to a gain on sale of $43.7m net of transaction costs.

The Gain on Sale is included in Other Income in the Income Statement shown on page 118 of the Annual Report. Other Income totaled $48.2m so about a further $4.5m from other sources is also present. The equivalent figure from 2021 when some ACE was also sold is $18m.

Given Profit for the 12 months is $55.8m the impact of the amount of Other Income from the sale transaction is a major component of the overall result. Obviously, this is not a sustainable approach in the long term but does point to the actual value of ACE in the marketplace being doubtless more than the carry value in the accounts.

[iceman]

Do you think this is a good move? Salmon/mussels seem like a mix bag…. What are ur thoughts on the business Iceman?

I was very surprised to see them sell this very valuable asset and same for the sale of orange roughy & hoki quota they sold in Tasmania that is also a very valuable asset.

I am pleased to see the business slowly turning around but with many seafood prices at all time highs, it would have been a disaster had they not. As they have recognised themselves, the inshore part of the business is underperforming and it needs sorting. That will take significant investment if they want to do it properly.
They have decided to build only 1 of their 3 scampi trawlers for now. That is risky as their current scampi boats are well outdated and questionable whether they are suitable for scampi areas such as the Auckland Islands.
Sadly they have made terrible mistakes with their most recent vessel choices and I'm not convinced that will change.

They're in a great area with their salmon farming and salmon consumption around the World is forever increasing and prices are high. Mussels are always more difficult.

It is a business with some very good underlying assets that should make a decent amount of money, if well managed. Until I see an improvement with some of the important decision making, I will stay on the sidelines.

[percy]

Thanks for your wise words Iceman.

[ronaldson]

Another concern is SanCore - their term for the current business wide information systems overhaul. From zero expenditure in 2018 and 2019 on SaaS (Software as a Service) expenditure subsequently is in excess of $20m with over $10m in y/e 30/09/2022. These are risky projects to deliver, so we are left to hope value for money will be achieved.

It also suggests an organisation with historical deficiencies only now being attempted to be remediated/modernised. Perhaps the arrival of Ngai Tahu as a significant shareholder is driving some of this?

[ralph]

Perhaps Ronaldson but a great result /turnaround & the right place to have an investment now compared to R E I T S etc built on N T A hype & such.
The People need seafood even with rampant Inflation .
Oh & back to a Divi whoop whoop

[iceman]

Another concern is SanCore - their term for the current business wide information systems overhaul. From zero expenditure in 2018 and 2019 on SaaS (Software as a Service) expenditure subsequently is in excess of $20m with over $10m in y/e 30/09/2022. These are risky projects to deliver, so we are left to hope value for money will be achieved.

It also suggests an organisation with historical deficiencies only now being attempted to be remediated/modernised. Perhaps the arrival of Ngai Tahu as a significant shareholder is driving some of this?

I believe this system was supposed to go live in November but has been delayed until March-April. Hopefully it goes well.

[Ricky-bobby]

Thanks iceman. Yeh I have done some digging today and came across what u have pointed out… also heard that Ngai Tahu are going to slowly accumulate to eventually take private. sidelines for me also.

[ronaldson]

Ricky-bobby: I don't believe the Takeovers Code allows for " slow accumulation " beyond the 20% threshold which Ngai Tahu are already just short of reaching, unless you already have more than a 50% shareholding and then its limited to not more than 5% in any 12-month period, so would take forever from that point to 90% when you can compulsorily acquire the rest.

But I wouldn't deny that sole (or a majority) ownership is likely to be the longer-term aspiration. So when they have access to the necessary capital I suggest a full or partial offer is plausible - depending upon your point of view that contingency could be a positive exit for existing holders sometime in the future, rather than a negative consideration.

[TFA]

A poor result, just $12m if you strip out the $43m profit from the sale of the cray quota. Capex of $17m in the survey of the San Granit. Does this mean this vessels problems are behind it? Some improvement overall but a long way from performing well.

[iceman]

A poor result, just $12m if you strip out the $43m profit from the sale of the cray quota. Capex of $17m in the survey of the San Granit. Does this mean this vessels problems are behind it? Some improvement overall but a long way from performing well.

That very old vessel has cost them knocking on a $ 80-90 million I reckon, the price of a high tech new vessel. An absolute disaster of an investment.
She's still an old vessel so I doubt very much the "problems are behind it".

[ronaldson]

One thing I admire about Sanford is the quality of their Annual Report. Pages 210 and 211 provide all the detail you could reasonably ask for regarding individual vessels in their quite sizeable fleet.

The San Granit referenced above (the fleet's largest) was built in Denmark in 1989. Excluding the vessels used in the Aquaculture activity, it is evident the fishing fleet is quite aged which means both high ongoing maintenance and a large capital requirement if replacement is contemplated, as it currently is for the scampi vessels where only one is being built just now because of the costs. There are presently five scampi vessels built between 1984 and 2000 so presumably the oldest/worst conditioned will go out the door when that new build is delivered.

Of the other deepwater vessels the San Waitaki, San Enterprise and San Discovery date to 1990-1992. The longliners San Aspiring and San Aotea II were built in 1993 and 2001 in Norway. The inshore vessels San Rakaia and San Tongariro date to 1996-1997 and the slightly smaller Ikawai and Tengawai were built in 1979.

The capital investment needed here can only be deferred so long, so to modernise means massive expenditure is on the horizon which looks beyond this business's immediate capabilities.

[ralph]

I think looking at Sealord's fleet they are all a similar age for Deepsea fleets all over 25 years old except the latest addition in 2018.
Similar scenario with Talley's most 80s & 90s vessels .
No mad rush by all these New Zealand Deepsea fleets to modernize via capital expenditure .
I do agree that modernizing and altering any Vessel of that size to todays standards is a very expensive exercise for all ,& could affect fish prices in the future

[Ferg]

Wow - what a massive report and as you say ronaldson, it is a high standard of disclosure.

It appears most KPIs are still heading in the right direction, although I have not done a 'deep dive' on the numbers and am unlikely to do so any time soon. It also appears they are being open about the issues they face. And ralph has touched on the age of the fleet.

But I do like the noises being made by the CEO and Chairman around building additional capacity, US expansion, Kotahi / Logistics, Bioactive initiatives and efficiency improvements. The recovery is taking longer than I thought but I'm happy waiting....

[iceman]

Amalgamated Dairies have sold their 6.01% holding down to 1.32%. I thought they were part of the Goodfellow family's fortunes but see no reference to the family as Directors or shareholders on the Companies Office Register. Can anyone enlighten me ?
The big question is was it Maruha or Ngai Tahu that bought ? Or someone else maybe ?

[percy]

Amalgamated Dairies have sold their 6.01% holding down to 1.32%. I thought they were part of the Goodfellow family's fortunes but see no reference to the family as Directors or shareholders on the Companies Office Register. Can anyone enlighten me ?
The big question is was it Maruha or Ngai Tahu that bought ? Or someone else maybe ?

I am sure you are right that Amalgamated Dairies were part of the Goodfellow family fortune.
I too could not confirm that via NZ Companies office.

[forest]

Amalgamated Dairies have sold their 6.01% holding down to 1.32%. I thought they were part of the Goodfellow family's fortunes but see no reference to the family as Directors or shareholders on the Companies Office Register. Can anyone enlighten me ?
The big question is was it Maruha or Ngai Tahu that bought ? Or someone else maybe ?

The last Goodfellow, Peter left the board some time ago so one would not expect a reference to them as a Director.

[ronaldson]

Iceman - It won't be Ngai Tahu buying because it would take them over the 20% threshold and trigger other obligations under the Takeover Code.

[iceman]

The last Goodfellow, Peter left the board some time ago so one would not expect a reference to them as a Director.

I was referring to Amalgamated Dairies, not Sanford.

[ronaldson]

Turnover for SAN reported on the NZX today is a massive 4,014,521 shares at a VWAP of $4.15, for over $16m gross. The shares sold down according to the Amalgamated Dairies' Substantial Holder Notice total 4,385,780 shares, so more than now disclosed on the exchange in today's numbers. However, the last reported notice given by Amalgamated Dairies was in 2021 and only movements of 1% of all shares on issue bought/sold are required to be notified, so other (relatively minor) sales by that entity have obviously occurred before today.

That begs the question who has purchased all/most of the shares disposed. If it is Maruha Nichiro Corp as Iceman speculates could be the case, we can expect another Substantial Holder Notice tomorrow as that entity is shown in the Annual Report (Top 20 shareholders) as having a 4.84% shareholding on 30 September, so would clearly go over the 5% threshold for mandatory disclosure.

Regardless, someone is building a stake whether or not that threshold is breached. Would/Will be interesting to know who has the confidence to do that.

[iceman]

That begs the question who has purchased all/most of the shares disposed. If it is Maruha Nichiro Corp as Iceman speculates could be the case, we can expect another Substantial Holder Notice tomorrow as that entity is shown in the Annual Report (Top 20 shareholders) as having a 4.84% shareholding on 30 September, so would clearly go over the 5% threshold for mandatory disclosure.

Regardless, someone is building a stake whether or not that threshold is breached. Would/Will be interesting to know who has the confidence to do that.

Now we know, NOT.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SAN/402605/383730.pdf

[ronaldson]

Well, we do. They (Tasman Equity Holdings Limited, Arden Capital Limited and Past Limited General Partnership) are associated parties acting in concert, who were already in combination a significant shareholder and with the further acquisition yesterday of another 4,000,000 shares now have 14.5% of SAN. You can check the Companies Office Register for each entity for further details. Maybe google the Directors and Shareholders of those companies for more background?

[iceman]

Well, we do. They (Tasman Equity Holdings Limited, Arden Capital Limited and Past Limited General Partnership) are associated parties acting in concert, who were already in combination a significant shareholder and with the further acquisition yesterday of another 4,000,000 shares now have 14.5% of SAN. You can check the Companies Office Register for each entity for further details. Maybe google the Directors and Shareholders of those companies for more background?

I did that first thing this morning and called a former Sanford executive. The names on the Companies Registrar don't ring any bells for us. Looking forward to learning what interests are behind these entities.

[TFA]

Good to see Peter Reidie CEO buying shares on market https://www.nzx.com/announcements/402657

[iceman]

Finally they announce the overdue upgrade of their scampi fleet, but surprisingly only one for now:

12 December 2022
Great Green Gains:
Sanford Announces Purchase of First-of-its-Kind Fishing Vessel
New Zealand seafood company Sanford Limited (NZX:SAN) has announced it has signed a
contract with Netherland’s based Damen Shipbuilding Maaskant for the design and build of a
new scampi vessel for operation in the Southern Ocean. The vessel will contribute to
Sanford’s target of reducing the carbon footprint from its direct operations by 25% between
2020 and 2030.
Sanford Chairman Sir Robert McLeod says “this exciting new vessel build signals our
intention to invest in our core business, to improve our efficiency and environmental
performance of our fleet. It strengthens our ability to supply exceptional New Zealand
seafood both domestically and to the rest of the world.”
Sanford CEO Peter Reidie says “the introduction of this modern vessel is a significant
milestone in Sanford’s strategy for our Wildcatch business. It will be a major step forward in
resilient vessel design, which will give us the ability to fish in more challenging conditions.
This investment of circa $30 million shows a strong commitment by Sanford and its Board, to
sustaining our core business and our fishing fleet.”
The vessel will be built in the Netherlands at Damen Maaskant, the home of Damen fishing
vessel build and repair since 1948, with an expected delivery in 2025.
To contribute to Sanford’s target of reducing scope 1 and 2 GHG emissions by 25% from
2020 to 2030, this vessel will employ low emission diesel/electric power as well as a number
of other innovations (see details below) which make it greener and safer.
***ENDS***
For a file of free-to-use images of the plans and design for Sanford’s scampi vessel, please
see this Dropbox folder.

[ralph]

Very nice Onwards & upwards great future

[iceman]

Rumours around the wharves that SAN will announce a significant restructure soon, including separation of wild catch, mussels & salmon, all into separately managed entities. The aim as I can understand it, is to get better oversight/understanding of costs and where the profits are actually made. There's a feeling the current structure is confusing and hard to clearly manage.
Recent results indicate they may be right about that !

[ralph]

Rumours around the wharves that SAN will announce a significant restructure soon, including separation of wild catch, mussels & salmon, all into separately managed entities. The aim as I can understand it, is to get better oversight/understanding of costs and where the profits are actually made. There's a feeling the current structure is confusing and hard to clearly manage.
Recent results indicate they may be right about that !

Sounds like the way forward ,keep the rumours coming ;)

[ronaldson]

The arrival of Ngai tahu on the share register with a significant holding, and the recent substantial additional purchase by the consortium (see post #367 above), presage change for Sanford.

I always thought management/governance of this company was a bit sleepy, especially given the quite longstanding practice where for decades retiring CEO's simply moved into a Board role for lengthy periods and kept looking over the shoulder of the next incumbent, making radical change a step too far to implement even if it could be contemplated.

Clearly this is a difficult industry, with many external forces at work, but splitting out the three segments as suggested above looks positive to me if it occurs.

[ronaldson]

And now a surprise announcement before the AGM this afternoon that Peter Cullinane, a current director required to stand for re-election and on the Agenda to do so supported by a Board recommendation, will not now be standing.

Another signal that change is on the cards?

[ronaldson]

Iceman - I attended the AGM and you are right about the " Divisional Restructure " (#372) although the CEO couldn't elaborate much due to the internal HR consultation process to underpin it being current and ongoing. But the intent is to allocate both costs and revenues to those three segments going forward. With the need to restructure first I would suggest it may be FY24 before a set of accounts emerges with a different presentation reflecting that intent.

Mike Pihio (Nga Tahu) (I have met him before in his capacity as a current Argosy Director) asked a series of questions which the Chair deferred to both post in full and answer on the website subsequently, as they were deemed too numerous, detailed and complex to respond at the meeting. Holders will no doubt be sufficiently interested to check the website and review in due course.

And I was personally impressed with the new CEO Peter Reidie.

[iceman]

Iceman - I attended the AGM and you are right about the " Divisional Restructure " (#372) although the CEO couldn't elaborate much due to the internal HR consultation process to underpin it being current and ongoing. But the intent is to allocate both costs and revenues to those three segments going forward. With the need to restructure first I would suggest it may be FY24 before a set of accounts emerges with a different presentation reflecting that intent.

Mike Pihio (Nga Tahu) (I have met him before in his capacity as a current Argosy Director) asked a series of questions which the Chair deferred to both post in full and answer on the website subsequently, as they were deemed too numerous, detailed and complex to respond at the meeting. Holders will no doubt be sufficiently interested to check the website and review in due course.

And I was personally impressed with the new CEO Peter Reidie.

Thanks for that. I think this "divisional restructure" is necessary and will be a benefit, if they do it right.

[ronaldson]

Another interesting SPH Notice from the consortium (see post #367 above) recorded today. Although the aggregate holdings have marginally declined.

[ronaldson]

The Board's response to the questions asked at the AGM by Ngai Tahu are now available on the SAN website. Unfortunately, I do not have the skills to copy these to this post/thread.

And it seems that former SAN Director Peter Cullinane's surprise decision not to stand for re-election announced just before the AGM was due to Ngai Tahu signaling they would not vote for that outcome.

So pressure is being applied to turn this around. Of course having acquired just under 20% of the Company at $5.50 per share their investment is significantly underwater just now, and the modest dividend paid will not be regarded as an adequate return on investment either, certainly not on an ongoing basis.

It's also interesting because Ngai Tahu also have their own quota allocation, I understand fished on their behalf by Talleys for the Sealord consortium.

There are clear signs that the future of this industry in NZ is in a state of flux. It's difficult to imagine with climate change et al that everything can just go on as before.

[Snoopy]

There are clear signs that the future of this industry in NZ is in a state of flux. It's difficult to imagine with climate change et al that everything can just go on as before.

Got sticker shock at the fishmonger last week. Blue Cod $69/kilo! I think it was $49/kilo at the same shop in January 2022, so a 40% rise in just 12 months. I imagine this is a flow in effect from running fishing boats on diesel.

SNOOPY

[iceman]

Rumours around the wharves that SAN will announce a significant restructure soon, including separation of wild catch, mussels & salmon, all into separately managed entities. The aim as I can understand it, is to get better oversight/understanding of costs and where the profits are actually made. There's a feeling the current structure is confusing and hard to clearly manage.
Recent results indicate they may be right about that !

And here it is: https://mailchi.mp/sanford.co.nz/the-sanford-source-19-january-2023?e=c169312b3e

[Ferg]

I thought the goal of business was to make a profit. Profit is the goal, not an outcome. This allows a return on investment for the owners. If there is no prospective return, then it's not an investment. I see 'profit' is an afterthought on that infographic. That's a worry....

[ValueNZ]

I thought the goal of business was to make a profit. Profit is the goal, not an outcome. This allows a return on investment for the owners. If there is no prospective return, then it's not an investment. I see 'profit' is an afterthought on that infographic. That's a worry....

Absolutely agree here Ferg.

“There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits.” - Milton Friedman

[bull....]

I thought the goal of business was to make a profit. Profit is the goal, not an outcome. This allows a return on investment for the owners. If there is no prospective return, then it's not an investment. I see 'profit' is an afterthought on that infographic. That's a worry....

agree
thats probably why the stock price is heading down again

[winner69]

Whose that newsletter written for / aimed at

[iceman]

Whose that newsletter written for / aimed at

Internal, management & other employees mainly I think

[iceman]

Had a chat with a vessel factory manager & skipper at Sanford today. They had just come in from a recent trip with 395t of frozen product, mainly hoki fillet block. That is approximately 11t per fishing day.
The fishing was good and daily production on most days controlled solely by factory output. They had 31 crew onboard instead of the 38-40 they normally have, with all the reduction being in the factory.
Given the fish size and condition on that trip, it wouldn't be unreasonable to say they should have averaged 16t per day, so 5 t more than they did do.

The average block value is probably in the vicinity of NZ$ 4,800 per tonne so over 35 fishing days, that is around $840,000 in lost production in one trip for one vessel, directly due to crew shortages. Then they also have less fish meal as a result of less catch.

It is clear that crew & general staff shortages are causing serious financial losses to SAN and other primary industry companies.

[BlackPeter]

Had a chat with a vessel factory manager & skipper at Sanford today. They had just come in from a recent trip with 395t of frozen product, mainly hoki fillet block. That is approximately 11t per fishing day.
The fishing was good and daily production on most days controlled solely by factory output. They had 31 crew onboard instead of the 38-40 they normally have, with all the reduction being in the factory.
Given the fish size and condition on that trip, it wouldn't be unreasonable to say they should have averaged 16t per day, so 5 t more than they did do.

The average block value is probably in the vicinity of NZ$ 4,800 per tonne so over 35 fishing days, that is around $840,000 in lost production in one trip for one vessel, directly due to crew shortages. Then they also have less fish meal as a result of less catch.

It is clear that crew & general staff shortages are causing serious financial losses to SAN and other primary industry companies.

Thanks for the info. Sounds like you expect them to keep scratching the bottom for some time to come?

[ronaldson]

I don't think this is easily fixable in this country even if changes are made to our immigration settings. Perhaps something can now be made of the Ngai Tahu connection in context? Or a relationship established with one of the Pacific Is countries to supply fly in/fly out crews a la the RSE scheme for the horticulture industry?

Another idea is that the major players in the fishing industry collaborate with marketing product via an auction platform as in the case of the dairy industry, rather than each investing substantially in a dedicated sales force operating in multiple countries and jurisdictions. Even starting in a minimalist way might yield surprises as to the location of bidders, and volumes disposed via that method.

[iceman]

I don't think this is easily fixable in this country even if changes are made to our immigration settings. Perhaps something can now be made of the Ngai Tahu connection in context? Or a relationship established with one of the Pacific Is countries to supply fly in/fly out crews a la the RSE scheme for the horticulture industry?

Another idea is that the major players in the fishing industry collaborate with marketing product via an auction platform as in the case of the dairy industry, rather than each investing substantially in a dedicated sales force operating in multiple countries and jurisdictions. Even starting in a minimalist way might yield surprises as to the location of bidders, and volumes disposed via that method.

Interesting suggestions there. I like your idea about FIFO Pacific Island crews. Something needs to happen. More automation and newer vessels needs to be part of the solution.

[Sideshow Bob]

https://www.nzx.com/announcements/407277

Sanford continues to see strong price recovery first quarter of FY23

New Zealand seafood company Sanford Limited (NZX:SAN) has released a first quarter update for FY23 (Q1 2023) with a notable strengthening of pricing in all divisions. Sales volumes are down on the same quarter last year due to timing and availability of some catch, several one-off events in FY22 and the timing effect of Sanford’s marine extracts plant start up. Sanford is confident it will achieve expected sales volumes over the full year, subject to catch and harvest meeting expectations.

Other notable results include:

• Wildcatch: pricing up 3.5% on Q1 2022. Sales volumes are however, down by 2.3k GWT (Greenweight Tonne) for the quarter, a 16% reduction on the prior comparable period (pcp) in 2022, which at this early stage of the year is mostly a timing difference.

• Greenshell Mussels: pricing in this division now exceeds pre-Covid levels, up 46% on pcp pricing, which was impacted by the lag effect of historic low-priced contracts. Q1 2023 saw a favourable mix of product with an increased percentage of half shell volume sales and less low-priced meat products. However, sales volumes were down 27% versus pcp being impacted by high Q4 2022 sales volumes and the need to rebuild inventories. Labour constraints and adverse weather conditions continue to impact the ability to process and supply. Demand outlook continues to be positive.

• Salmon: pricing is strong in this division, achieving the best prices in any quarter for the last five years and up 28% on pcp in addition to a favourable sales mix. Sales volumes are down on pcp, which included a significant amount of clearance of frozen inventory, bringing this quarter’s sales volumes in line with Sanford’s expectations. Apart from the anomaly in Q1 last year, volumes are in line with historical quarterly levels.

CEO Peter Reidie says “we are pleased to see the increase in pricing in all divisions, as we move further away from the impacts of Covid-19. We are still in recovery mode and the strong prices are in part offset by increased costs for fuel, freight, salmon feed and labour.

“Salmon was the stand-out division in this quarter with strong pricing and this area of the business is performing very well overall. The reputation of our Big Glory Bay salmon continues to grow, and demand is increasing from the USA. In the first quarter, BGB products represented 57% of sales compared to 34% in Q1 2022.
“We continue to keep a close eye on the health of our salmon, particularly in the warmer summer months, although at this time, we see no need for concern about heat-related mortalities.”

Mr Reidie says that wildcatch volume performance has been impacted by a shift in sales volume out of Q1 2023 into Q2, particularly with high value scampi. “Our recent catch performance with toothfish in the Ross Sea has been above expectations, although squid volumes are soft relative to the last three years. Given the pricing effect demonstrated and our outlook on sales volumes we are confident we remain on track with our post-Covid recovery.

“We also continue to address our labour issues at home as best we can, which have particularly impacted our mussel division. Our North Island based mussel processing, carried out by NIML (North Island Mussels Limited, in which we own a 50% stake), now has access to workers from the Solomon Islands. In the South Island, we are continuing our focus on recruitment for our Havelock plant, but we remain challenged with labour availability there.”

Mr Reidie says the impacts from the recent severe weather events are expected to be manageable although there will be some disruption around mussel harvesting and processing in Coromandel.

“We were extremely pleased that our people came through the floods and cyclones safely, thanks to the focus of our operational teams and leaders.”

Sanford’s half year results will be announced in late May.
See the attached for graphs containing divisional data.

[Sideshow Bob]

https://www.nzx.com/announcements/411758

Sanford Interim Results Show Improving Profitability, On Track for Further Growth

Sanford Limited (NZX: SAN) has reported further improvement in its financial performance for the six months ending 31st March 2023. Key highlights include:

• Net Profit After Tax (NPAT) for H1 2023 is $11.1 million, which compares favourably to NPAT for H1 2022 ($6.1 million).
• Adjusted EBIT for H1 2023 is $26.6 million, a 38.7% increase on the same period last year ($19.2 million).
• Revenue of $277.6 million is up 2.5% versus H1 2022 ($270.9 million).
• Salmon division particularly strong with a 45% increase in profit, whilst Wildcatch again remained steady, and Mussels continues to lag expectations.
• North Island inshore catch rights to be sold to Moana New Zealand through a new long-term arrangement.

Sanford CEO Peter Reidie says that despite these improvements, labour shortages and cost pressures have meant the seafood company has not yet returned to pre-Covid levels of profitability.

Sanford is New Zealand’s largest and oldest seafood company and has a diverse range of interests across fishing and aquaculture. Its profits were heavily impacted by Covid, but Mr Reidie says that has now changed.

“We have seen very encouraging growth in global sales. There is strong demand across the board. This ranges from our highly valued scampi and salmon to more everyday products such as hoki and squid. We have seen record pricing in the period for all these species and more.”

Given the improved performance, Sanford’s Board is pleased to announce an interim dividend of six cents per share.
Led by our strategy, a focus of the first half of 2023, has been to restructure the business into three divisions: Wildcatch, Salmon and Mussels, results for which are reported below.

Divisional Highlights

Salmon continues to outperform

Sanford’s Salmon division continues to outperform, with an increase in profit contribution of 45.2% or $5.5m and revenue growth of 8.6% versus the prior comparable period (pcp).

Mr Reidie notes that “pricing and demand are strong and harvest volumes are stable compared to the first half of 2022. The reduction of volume is driven by clearance of frozen volume in the prior comparable period. We can also report that mortalities are low (at 2.9% for H1) and are well managed with new initiatives such as pen relocation, increased net cleaning and the option to add oxygenation when required.”

Mussels lagging expectations

Performance in the Mussels division is improving but is below expectations for the half, despite delivering an increase in profit contribution and revenue relative to H1 2022.

Mr Reidie says “pricing and demand have been strong, but improvements have been limited by our ability to supply the desired volumes to market. We saw a 13.0% reduction in sales volumes versus H1 2022. Revenue has risen, despite the volume reduction, partly because we have sold more half shell format mussels in H1 2023, which is a higher value product of lower weight. In the prior comparable period, we sold more whole mussels, at lower prices.

“Holding us back has been the slow commissioning of our new Bioactives (marine extracts) plant, labour shortages in our processing plant in Havelock and difficult weather patterns which have impacted mussel growth. We are optimistic these three factors will improve in H2 2023.”

Wildcatch steady, inshore performance in focus

Sales volumes in Wildcatch have been consistent with the prior comparable period (down 1.2%). Revenue for this division is up by 8.6% versus H1 2022 and the profit contribution is also relatively consistent with H1 2022, up 2.3%. While squid catch volumes were down for the first six months of our 2023 year, hoki and toothfish harvest volumes were up, hence the relatively flat performance in this business unit.

Mr Reidie says that “while the deepwater part of the business is stable and profitable, unfortunately the inshore area of Sanford’s Wildcatch division has been underperforming for some time. Following a review into this division, we have now agreed to sell much of our North Island inshore Annual Catch Entitlement (ACE) to Moana New Zealand through a new long-term agreement. Sanford retains ownership of the North Island inshore quota. This will simplify our operations and establish a lower-risk passive revenue stream for our North Island inshore ACE."

This arrangement is subject to two conditions, including the Commerce Commission granting Moana a clearance in respect of the transaction. Settlement is expected to occur in Q4 of FY23, but this will depend on when the conditions are satisfied.

More details about this transaction can be found in the separate announcement that accompanies this interim results release on Sanford’s website.

People, Supply Chain and Outlook

Engagement scores remain consistent at 7.5 (out of 10) overall, representing strong engagement with our work and culture across all areas of our business, with a 59% participation rate.

We continue to see great results from our focus on Food Safety and Quality. Substantiated complaints are down 42% in 2023 versus H1 2022.

The supply chain for frozen exports remains challenged by both local and global issues. Sanford has continued to work hard with all its partners to keep product moving to customers. Our sea freight rates were contracted in mid-2022 and therefore a premium is being paid for current shipments. These rates will soften for FY24. Supply chain cost increases are being passed to customers.
There have been notable achievements in sustainability with significant emissions upgrades approved for two large vessels in our deepwater fleet. These will deliver transport energy efficiency improvement of 7-11% per vessel.

Peter Reidie says that overall, there have been significant performance improvements for the first half of 2023, but the company is focused on achieving more, and on mitigating or eliminating the issues that have held back a more rapid return to desired profitability. “We thank our investors for their patience and our people for their hard work. With the restructure underway and significant projects such as Bioactives progressing, we look forward to seeing the benefits of that hard work in H2.”

[iceman]

The asset sales continue. This time inshore North Island catch entitlements and closing of their outdated factory in Auckland.
Basically saying “we don’t know how to manage this so will give it to Moana to manage”.

This follows on from PI tuna assets, Tauranga pelagic assets and quota in Tasmania. I don’t like this one bit.

[Balance]

The asset sales continue. This time inshore North Island catch entitlements and closing of their outdated factory in Auckland.
Basically saying “we don’t know how to manage this so will give it to Moana to manage”.

This follows on from PI tuna assets, Tauranga pelagic assets and quota in Tasmania. I don’t like this one bit.

The right thing to do imo as Sanford had expanded into too many peripheral operations which detracts from where the company historically made most of its money.

I recall Ralph Waters taking over FBU and the first thing he did was to initiate an operational and asset review - after which he embarked on a wholesale divestment of peripheral and non core assets and operations.

As he articulated later when FBU went from strength to strength under his management, there were too many distractions from FBU's core operations where most of the profits were made and which had the most potential to grow even more when management efforts were focused on them.

[kiwikeith]

Very interesting to compare how well their salmon business is going compared with King Salmon (NZK). I am assuming most of this has to do with having their Salmon farms further south (than Marlborough) where the water is colder.

[Bikeguy]

The right thing to do imo as Sanford had expanded into too many peripheral operations which detracts from where the company historically made most of its money.

I recall Ralph Waters taking over FBU and the first thing he did was to initiate an operational and asset review - after which he embarked on a wholesale divestment of peripheral and non core assets and operations.

As he articulated later when FBU went from strength to strength under his management, there were too many distractions from FBU's core operations where most of the profits were made and which had the most potential to grow even more when management efforts were focused on them.

This seems like a fair assessment and opinion to me, appreciated.

[ralph]

Very interesting to compare how well their salmon business is going compared with King Salmon (NZK). I am assuming most of this has to do with having their Salmon farms further south (than Marlborough) where the water is colder.
Spot on Keith Fish/Salmon farming is very lucrative if you know what you are doing .
Stick to what you are good at & makes profit sensible enough.

[iceman]

The right thing to do imo as Sanford had expanded into too many peripheral operations which detracts from where the company historically made most of its money.

I recall Ralph Waters taking over FBU and the first thing he did was to initiate an operational and asset review - after which he embarked on a wholesale divestment of peripheral and non core assets and operations.

As he articulated later when FBU went from strength to strength under his management, there were too many distractions from FBU's core operations where most of the profits were made and which had the most potential to grow even more when management efforts were focused on them.

It doesn't get any more historical than Sanford's inshore fishing off the upper NI. After all that is where Albert Sanford started and from where the company was built into what it is today. I disagree about the quota sale in Tasmania. Very valuable asset and a silly offload in my humble opinion. The Talley's wouldn't have bought it if it was a bad asset. Ditto Moana taking over the NI inshore fishing. The PI and Tauranga pelagic fishing may have been unnecessary distractions though.

[Balance]

It doesn't get any more historical than Sanford's inshore fishing off the upper NI. After all that is where Albert Sanford started and from where the company was built into what it is today. I disagree about the quota sale in Tasmania. Very valuable asset and a silly offload in my humble opinion. The Talley's wouldn't have bought it if it was a bad asset. Ditto Moana taking over the NI inshore fishing. The PI and Tauranga pelagic fishing may have been unnecessary distractions though.

From small beginnings of inshore fishing into one of NZ's largest & very profitable aquaculture & fishing companies - until the company lost its way and allowed its management structure to be stretched on multiple fronts. That's what the sale of non-core, small scale and peripheral assets and businesses are about - bringing focus to what can be more profitable and growth businesses.

NZ's inshore fishing industry is under enormous pressure and it makes sense to me to get rid of this operation to someone else with scale (like Moana Pacific). Heck, the total value of snapper exports are worth around 10% of total mussels to put that in perspective!

Meanwhile, it can be seen that its salmon and mussel operations are benefiting from the focus now placed on them - more upside imo to come in the years ahead. The price of salmon is ridiculous now in our local supermarket - it's now $45 to $47 kg - used to be around $35 kg last year! And they are struggling to get supply due to King Salmon's well known problems.

As an aside, I was told from one of the buyers of Sanford's discarded low value mussel harvests (small, broken and blue which are further processed into high value mussel powder) that they are struggling to get supply due to renewed demand for mussels in the export markets and due to Sanford making excellent returns from their own mussel powder business.

[iceman]

From small beginnings of inshore fishing into one of NZ's largest & very profitable aquaculture & fishing companies - until the company lost its way and allowed its management structure to be stretched on multiple fronts. That's what the sale of non-core, small scale and peripheral assets and businesses are about - bringing focus to what can be more profitable and growth businesses.

NZ's inshore fishing industry is under enormous pressure and it makes sense to me to get rid of this operation to someone else with scale (like Moana Pacific). Heck, the total value of snapper exports are worth around 10% of total mussels to put that in perspective!

Meanwhile, it can be seen that its salmon and mussel operations are benefiting from the focus now placed on them - more upside imo to come in the years ahead. The price of salmon is ridiculous now in our local supermarket - it's now $45 to $47 kg - used to be around $35 kg last year! And they are struggling to get supply due to King Salmon's well known problems.

As an aside, I was told from one of the buyers of Sanford's discarded low value mussel harvests (small, broken and blue which are further processed into high value mussel powder) that they are struggling to get supply due to renewed demand for mussels in the export markets and due to Sanford making excellent returns from their own mussel powder business.

I suppose we have quite a different view on this Balance. I have not seen one successful fishing company around the World sell quota assets. They are a catch entitlement from a natural resource and go up in value nearly each and every year. They are not comparable to assets owned by FBU.
Sanford's boats and factories are a different story. They are just like any other assets. The quotas are not. But I do note that in this latest announcement they say Sanford retained ownership of the ACE but no explanation is provided.

I do agree with you however that I think Moana will do a better job of managing the inshore fishing operation than Sanford has as they seem to have a better focus and also being owned by Iwi, have a very favourable tax status.
You say snapper exports are only 10% of mussels which is true, but of course the inshore fleet catches much more than snapper.

If Sanford accept they are not good managers of the inshore fishery, what makes us think they are effectively managing their deep water fleet ? Don't forget we have had 2-3 years of exceptional seafood prices, salmon in particular but also most whitefish. The best fishing companies around the World are making records profits and buying up more quotas, not selling them.

Sanford and any successful seafood company needs to be reasonably diversified but focused. Salmon is going great guns at the moment and is likely to for years to come. But is has huge risks. Examples are an algae bloom in Chile that killed 2/3 of their salmon and cost them USD 800m and this in Norway
https://www.globalseafood.org/advocate/killers-at-sea-harmful-algal-blooms-and-their-impact-on-aquaculture/

You can not put all your eggs in one basket in this industry.

[Valuegrowth]

For the first time since 2000, SAN has fallen below $4.70.
This stock had found consistent and reliable support at this level many times over the last 3 1/2 years.

http://home.ripway.com/2003-11/39768/927548-SAN001.gif Another defensive value play.

[BlackPeter]

Another defensive value play.

Not so sure.

Sanford is neither a monopoly nor low risk. Its fortunes are dependant on a huge number of factors they can't control (national and international politics, national and international fishing laws, Treaty settlement gravy train, weather events, global warming) and they would need outstanding management to survive. In the past they frequently popped around like a nutshell in the stormy waves of the ocean - and they made big mistakes in spades (like buying overpriced and unsuitable junk as ships, like ignoring national and international fishing rules, like selling fishing quota they will never get back).

What do you think has changed to turn them into a "defensive value play"?

[Valuegrowth]

Everybody make mistakes including me. They also have some labour issues, but every crowd has a silver lining. Currently, it's trading great discount to the market. To night
I will post more information on the sector and on SAN.

[Valuegrowth]

https://www.nzx.com/companies/SAN/analysis

Performance

The following information was extracted from Sanford Limited's Half Year Results, released on 22 May 2023:

Sanford Limited (NZX: SAN) has reported further improvement in its financial performance for the six months ending 31st March 2023. Key highlights include:

- Net Profit After Tax (NPAT) for H1 2023 is $11.1 million, which compares favourably to NPAT for H1 2022 ($6.1 million).
- Adjusted EBIT for H1 2023 is $26.6 million, a 38.7% increase on the same period last year ($19.2 million).
- Revenue of $277.6 million is up 2.5% versus H1 2022 ($270.9 million).
- Salmon division particularly strong with a 45% increase in profit, whilst Wildcatch again remained steady, and Mussels continues to lag expectations.
- North Island inshore catch rights to be sold to Moana New Zealand through a new long-term arrangement.

Sanford CEO Peter Reidie says that despite these improvements, labour shortages and cost pressures have meant the seafood company has not yet returned to pre-Covid levels of profitability.

Sanford is New Zealand’s largest and oldest seafood company and has a diverse range of interests across fishing and aquaculture. Its profits were heavily impacted by Covid, but Mr Reidie says that has now changed.

“We have seen very encouraging growth in global sales. There is strong demand across the board. This ranges from our highly valued scampi and salmon to more everyday products such as hoki and squid. We have seen record pricing in the period for all these species and more.”

Given the improved performance, Sanford’s Board is pleased to announce an interim dividend of six cents per share.

Led by our strategy, a focus of the first half of 2023, has been to restructure the business into three divisions: Wildcatch, Salmon and Mussels, results for which are reported below.

Disclaimer: This section is provided as general information only. It is not intended as a substitute for legal or professional advice to company directors and officers or investors. NZX Limited disclaims any liability arising from the use of this information.

[Valuegrowth]

This is a good move.Business units that are underperforming need to be addressed(Fix or sell) while focusing on core businesses.

The asset sales continue. This time inshore North Island catch entitlements and closing of their outdated factory in Auckland.
Basically saying “we don’t know how to manage this so will give it to Moana to manage”.

This follows on from PI tuna assets, Tauranga pelagic assets and quota in Tasmania. I don’t like this one bit.

[Valuegrowth]

Will this boring business becomes beautiful? I think so. Back then their share prices have traded above $8. One sector which got hit during covid-19. Naturally, Stock prices will go down in black swan situation like that. Finally, Sector has recovered and fish consumption is going to go up again. In the meantime China has resumed import of fish products from New Zealand after suspension of import during covid-19 period. On top of that tourism is picking up worldwide.

PE ratio of SAN(6.3x) is much below the market. Trading at good value when compared to peers(peer average 33.3x) and the industry. At least it should trade at fair PE ratio(between 10 to 15). This is not a highly leverage company as well. When compare with market, sector and peers, it’s very attractive to me. Peer comparison is a great way to find attractive stocks. On top of that it’s also a company in the defensive sector.

Big positive factor for meat and fish sector is rising middle class population in the Asia-pacific region. They will definitely, will create demand for quality food.

https://www.globaltimes.cn/page/202305/1291634.shtml

China resumes importing aquatic products from 20 overseas companies: customs
By Global TimesPublished: May 30, 2023 09:13 PM

China resumed importing aquatic products from 20 overseas companies starting on May 26, the General Administration of Customs (GAC) said in a statement on its website on Tuesday.

The companies are based in several countries including Pakistan, Brazil, Malaysia, Spain, New Zealand and Indonesia, the statement showed.

https://www.mfat.govt.nz/en/trade/free-trade-agreements/free-trade-agreements-in-force/cptpp/information-for-exporters/cptpp-and-japan/

CPTPP is New Zealand’s first trade agreement with Japan – the world’s third largest economy and our fourth-largest individual trading partner and source of foreign direct investment.



Seafood

· immediate elimination of tariffs on more than half of New Zealand’s fish and other seafood exports to Japan, including mussels;
· elimination on 95% of exports by 1 April 2023, and the remainder by 1 April 2033.



https://www.mfat.govt.nz/en/trade/free-trade-agreements/free-trade-agreements-in-force/nz-china-free-trade-agreement/key-facts-on-new-zealand-china-trade/

China is the world’s second largest economy and most populous country. Its sizeable and growing middle class offers significant opportunities for New Zealand exporters and investors.

https://www.seafoodsource.com/features/here-s-what-we-ll-need-for-seafood-in-2030-and-how-to-get-there

Here’s what we’ll need for seafood in 2030, and how to get there

Come 2030, the world’s population will require 232 million metric tons (MT) of seafood, around 62 million MT more than the planet is expected to produce unless bold steps are taken, according to international research organization WorldFish Center.

https://www.scoop.co.nz/stories/BU2211/S00228/sanford-2022-full-year-results-perseverance-produces-significant-recovery-from-covid-impacts.htm

Sanford 2022 Full Year Results: Perseverance Produces Significant Recovery

file:///C:/Users/laxan/Downloads/SAN140-Annual-Report-2022-FINAL.pdf (file:///C:/Users/laxan/Downloads/SAN140-Annual-Report-2022-FINAL.pdf)

Our high-level business model can be described as very simple. We harvest wild and farmed seafood, convert it to a desirable product and send it through our supply chain to customers nationally and internationally

https://www.marketwatch.com/press-release/2030-fish-and-seafood-market-size-industry-report-2023-2023-06-15

2030, Fish and Seafood Market Size | Industry Report 2023

Published: June 15, 2023 at 11:44 p.m. ET

Global Fish and Seafood market size was valued at USD 171864.14 million in 2022 and is expected to expand at a CAGR of 4.03% during the forecast period, reaching USD 217878.11 million by 2028.”

https://finance.yahoo.com/news/frozen-whole-fish-market-witness-140700678.html

Frozen Whole Fish Market to Witness Steady Growth through 2030: Increasing Demand, Cold Chain Advancements, and E-commerce Drive Expansion

According to the report, the global frozen whole fish market is expected to grow steadily through 2030, driven by increasing demand, advancements in cold chain infrastructure, and improvements in packaging and transportation methods. The report highlights key growth drivers, challenges, and factors affecting demand, as well as providing a comprehensive overview of the major consuming industries and their impact on the market.

One of the primary growth drivers for the frozen whole fish market is the increasing demand from consumers for convenient, high-quality, and affordable protein sources. The rise in disposable incomes and urbanization in emerging markets has contributed to the growth in demand for frozen fish products. Additionally, the adoption of e-commerce and online delivery platforms has made frozen fish more accessible to consumers worldwide.

https://finbox.com/NZSE:SAN/dividends/ (https://finbox.com/NZSE:SAN/dividends/)

Dividend history details

[ralph]

Interesting in that report the green lipped mussels are not meeting expectations volume wise, but still an Increase in profit in the mussels segment ,as they cannot produce enough .
It is looking to be much better for H2

[iceman]

Valuegrowth. The seafood industry has had historically high seafood prices and demand for most species for the last 2 years. Many seafood companies worldwide have been making lots of money and buying more quotas and new vessels. Sanford has not been making any meaningful money, has been selling quota assets and continues to run an outdated fleet and factories.
I'm happy to watch from the sidelines.

[BlackPeter]

...

PE ratio of SAN(6.3x) is much below the market. Trading at good value when compared to peers(peer average 33.3x) and the industry. At least it should trade at fair PE ratio(between 10 to 15). This is not a highly leverage company as well. When compare with market, sector and peers, it’s very attractive to me. Peer comparison is a great way to find attractive stocks. On top of that it’s also a company in the defensive sector.

...

https://finbox.com/NZSE:SAN/dividends/ (https://finbox.com/NZSE:SAN/dividends/)

Dividend history details



If I look at the long term (10 years) average PE of SAN, it is currently at 12.4, and if I use the analyst predictions, the forward PE is 12.5. Not so cheap. Always dangerous to make decisions based on one years results.

I assume you realise that their good earnings last year came from selling quota.
Do you understand that without quota they have no business? So, just wondering how often they can repeat this exercise before they are out of the industry?

But lets face it - a low PE (even if it is not just a blib) can mean a lot of things. It could mean that the market is nuts, and you are the only one seeing value, in this case, go for it.

It could however mean as well that the market does not expect the company to maintain these earnings (always forward looking) - expecting either the business to go down or foreseeing some really expensive investments just to stay in business.

Did you consider this second option in your analysis? From memory - the SAN fleet is aging and they have a history of buying overpriced and unsuitable (for the purpose) ships.

How many new ships you think they can afford before they eat all their potential earnings?

Is it a good time for them to make in the current situation some really big investments, or should they buy another piece of overpriced junk? What would you like to see as shareholder?

While it currently looks like most shares are going up (the thing with the tide and all boats) - SAN seems to have (just looking at the SP) a leak ... guite dangerous situation for a company relying on ships.

I personally would think there are certainly safer bets around - but anyway, good luck!

[Valuegrowth]

Thank you Iceman, Blackpeter for the information. I love out of favour stocks.

[Valuegrowth]

Interesting in that report the green lipped mussels are not meeting expectations volume wise, but still an Increase in profit in the mussels segment ,as they cannot produce enough .
It is looking to be much better for H2I think so. Animal protein sector should do well in the coming financial year.

[Bikeguy]

If I look at the long term (10 years) average PE of SAN, it is currently at 12.4, and if I use the analyst predictions, the forward PE is 12.5. Not so cheap. Always dangerous to make decisions based on one years results.

I assume you realise that their good earnings last year came from selling quota.
Do you understand that without quota they have no business? So, just wondering how often they can repeat this exercise before they are out of the industry?

But lets face it - a low PE (even if it is not just a blib) can mean a lot of things. It could mean that the market is nuts, and you are the only one seeing value, in this case, go for it.

It could however mean as well that the market does not expect the company to maintain these earnings (always forward looking) - expecting either the business to go down or foreseeing some really expensive investments just to stay in business.

Did you consider this second option in your analysis? From memory - the SAN fleet is aging and they have a history of buying overpriced and unsuitable (for the purpose) ships.

How many new ships you think they can afford before they eat all their potential earnings?

Is it a good time for them to make in the current situation some really big investments, or should they buy another piece of overpriced junk? What would you like to see as shareholder?

While it currently looks like most shares are going up (the thing with the tide and all boats) - SAN seems to have (just looking at the SP) a leak ... guite dangerous situation for a company relying on ships.

I personally would think there are certainly safer bets around - but anyway, good luck!

It’s always prudent to consider any information available when making an investment, so much appreciated,
It would be reasonable to say Ngai Tahu are a fairy successful local operator and having them take a position as a cornerstone investor gives me confidence in this company.
Regardless of what the share price does or doesn’t do my opinion is that Ngai Tahu have made clear by their actions in securing on market at significant premium nearly 20% of Sanfords that their intentions are for this company to remain NZ owned, and I personally would not be at all surprised if they made an offer to purchase
a controlling or complete takeover offer for Sandfords.

[winner69]

When I think Sanford I recall all the big forex stuff ups they’ve had. Got it under control now?

And I recall how excited everybody was when share price was 8 bucks plus

[Bikeguy]

Yes, I agree,
I don’t see a return to those heady days…

[ralph]

Yes, I agree,
I don’t see a return to those heady days…
There will be no heady days for anyone untill this bear market disappears .
I think you are on to it valuegrowth got to see the bigger picture .
WE have had these conversations with blackpete he enjoys ramping down before he forgets Bless him.

post 367 same thread

I think looking at Sealord's fleet they are all a similar age for Deepsea fleets all over 25 years old except the latest addition in 2018.
Similar scenario with Talley's most 80s & 90s vessels .
No mad rush by all these New Zealand Deepsea fleets to modernize via capital expenditure .
I do agree that modernizing and altering any Vessel of that size to todays standards is a very expensive exercise for all ,& could affect fish prices in the future

[Valuegrowth]

Fishing Industry Aids Iceland's Recovery.

Three years after a spectacular financial collapse, Iceland is coming back, largely on the strength of its strong exports.
    
Three years after a spectacular financial collapse, Iceland is coming back, largely on the strength of its strong exports. Video and reporting by Charles Forelle from the island of Vestmannaeyjar.
Three years after a spectacular financial collapse, Iceland is coming back, largely on the strength of its strong exports. Video and reporting by Charles Forelle from the island of Vestmannaeyjar.
https://www.wsj.com/video/fishing-industry-aids-iceland-recovery/E1ED2AC5-D98B-4760-844E-67F8BA64A136.html

[winner69]

Fishing Industry Aids Iceland's Recovery.

Three years after a spectacular financial collapse, Iceland is coming back, largely on the strength of its strong exports.
    
Three years after a spectacular financial collapse, Iceland is coming back, largely on the strength of its strong exports. Video and reporting by Charles Forelle from the island of Vestmannaeyjar.
Three years after a spectacular financial collapse, Iceland is coming back, largely on the strength of its strong exports. Video and reporting by Charles Forelle from the island of Vestmannaeyjar.
https://www.wsj.com/video/fishing-industry-aids-iceland-recovery/E1ED2AC5-D98B-4760-844E-67F8BA64A136.html


Seafood exports not saving NZ these days

https://www.seafood.co.nz/fileadmin/Export_Statistics/2023-05-Summary-Prov.pdf

[Valuegrowth]

Thank you for the link. I looked at few companies in the same industry. Australia's ING is trading at a PE ratio of around 70. I also noticed SAN'S balance sheet is much better than ING"s balance sheet.I thought why not create demand for very attractive, out of favour NZ stocks. I can remember once Peter Lynch said: You find your winning stocks from your neighbourhood.

https://tradingeconomics.com/new-zealand/exports

Exports in New Zealand increased 2.8% from a year earlier to 6990 NZD Million in May, as sales rose for Milk powder, butter, and cheese (21%); Fruit (8.8%) and Fish, crustaceans, and molluscs (23.5%). In contrast, outbound shipments fell for Meat and edible offal (-0.9%); Logs, wood, and wood articles (-15%) and Aluminium and aluminum articles (-11.2%)



Seafood exports not saving NZ these days

https://www.seafood.co.nz/fileadmin/Export_Statistics/2023-05-Summary-Prov.pdf

[iceman]

Fishing Industry Aids Iceland's Recovery.

Three years after a spectacular financial collapse, Iceland is coming back, largely on the strength of its strong exports.
    
Three years after a spectacular financial collapse, Iceland is coming back, largely on the strength of its strong exports. Video and reporting by Charles Forelle from the island of Vestmannaeyjar.
Three years after a spectacular financial collapse, Iceland is coming back, largely on the strength of its strong exports. Video and reporting by Charles Forelle from the island of Vestmannaeyjar.
https://www.wsj.com/video/fishing-industry-aids-iceland-recovery/E1ED2AC5-D98B-4760-844E-67F8BA64A136.html


Since this 11 years old article you have linked was written, Iceland has renewed it's fleet almost entirely. The efficiency gains thanks to modern vessels and machinery and value increases through World class production technology, have been immense. To give you but one example, yesterday there was an article in an Icelandic fishing mag that said fuel consumption in the industry has decreased 40% since 2010.

[Valuegrowth]

Iceland has created one of the world’s most modern seafood industries through sustainable harvest and protection of the marine ecosystem. Found another link with a different story.

https://www.icelandreview.com/economy/damning-report-on-icelands-fish-farming-industry/



Since this 11 years old article you have linked was written, Iceland has renewed it's fleet almost entirely. The efficiency gains thanks to modern vessels and machinery and value increases through World class production technology, have been immense. To give you but one example, yesterday there was an article in an Icelandic fishing mag that said fuel consumption in the industry has decreased 40% since 2010.

[Valuegrowth]

Just like for any other industry, high ocen freight rates and high diesel prices have affected fishing companies negatively in 2022.Going forward,lower ocean freight rates will benefits their export sector.

https://www.statista.com/statistics/1250636/global-container-freight-index/

Monthly container freight rate index worldwide 2019-2023

Published by
Martin Placek (https://www.statista.com/aboutus/our-research-commitment/2764/martin-placek),
Jul 11, 2023

Container freight rates oscillated dramatically between January 2019 and June 2023. The year 2021 saw an especially steep increase in global freight rates, reaching a record price of nearly 10,400 U.S. dollars in September 2021.

In June 2023, the global freight rate index stood at almost 1,500 U.S. dollars."

https://mekseaconnection.com/the-tuna-industry-is-feverish-because-of-ocean-freight-rates/#:~:text=Currently%2C%20businesses%20specializing% 20in%20canned,compared%20to%201%20year%20ago.

“According to the Harper Shipping Index, the global container price for a 20ft container as of January 7, 2022, is 3,817 points. In the first week of January 2021, the index was around 1,000 points, which means that shipping prices for these boxes have increased by 280%.

Currently, businesses specializing in canned tuna products are suffering from high ocean freight rates. Previously, a 20ft container of canned tuna from Thailand to the US was about 8,000 to 13,000 USD. Now, this fee has increased 3-4 times compared to 1 year ago. While US importers often buy on FOB, that is, they have to pay a large amount of money for shipping fees.”

[Valuegrowth]

https://www.scoop.co.nz/stories/BU2307/S00096/20m-deal-for-new-zealand-seafood-secured-with-a-signed-eu-nz-fta.htm#:~:text=Under%20the%20UK%2DNZ%20FTA,100%20 percent%20within%20seven%20years.

"New Zealand seafood will gain $20 million in tariff reductions when the Free Trade Agreement (FTA) with the European Union comes into force in the first quarter of 2024.The elimination of tariffs (a tax imposed on imported products) will considerably increase the earnings from New Zealand seafood exports, says Seafood New Zealand chief executive, Dr Jeremy Helson.

The signing of the FTA with the European Union follows the new FTA with the United Kingdom that came into force on 31 May 2023. Under the UK-NZ FTA, 45 percent of New Zealand’s fish and seafood now enters the UK tax-free. Of the remaining 55 percent of products, most (99.5 percent) will enter duty free within three years, and 100 percent within seven years."

[Valuegrowth]

https://www.maersk.com/news/articles/2023/03/27/asia-pacific-market-update-march

Ocean Update

Oceania

Following continued disruption to the Maersk ocean network in New Zealand, and in response to the severe weather events in the North Island, the Polaris service is being re-started. The Polaris service will help minimise customer impact from current operational disruptions while continuing to connect customer supply chains during the upcoming New Zealand export season by increasing network flexibility across Australia and New Zealand.

Oceania - World

At Maersk we continue to invest in improving our Schedule Reliability. We are re-launching the Polaris service to assist minimize customer’s impact from the current operational disruption while continuing to connect our customers supply chains during the upcoming New Zealand export season, by increasing network flexibility across Australia and New Zealand.

With demand returning back to full swing following CNY, we are running at high to full capacity in most sectors.

The export of foodstuff and commodities continue to fuel trades between Asian countries, and we stay committed to serving the needs of these trades with specialized deployment


Air Update

Oceania:

Vietnam products add higher return flight rotations to and from Oceania. Increased capacity offers some freight reductions on major air transportation lanes.

Bangladesh and India freight costs are slower to react to softer markets with less wide body capacity available into Australia and New Zealand.
Indonesia gains options into New Zealand in March, providing savings for customers in both transit and freight costs.
Best value for customers exporting from Australia to New Zealand on Adhoc terms, continuing to be on spot levels with the sector remaining very tight.

Australia and New Zealand exports see boosts in capacity to most Asia-Pacific destinations.

Additional savings can be made for customers with higher flexibility of transit time and selection of indirect services.

[Valuegrowth]

https://www.mpi.govt.nz/about-mpi/our-work/mpi-scholarships-and-awards/new-zealand-seafood-sustainability-awards-2023/

New Zealand Seafood Sustainability Awards 2023

Future Leader Award Winner: Sarah Bynevelt

https://www.mpi.govt.nz/assets/On-page-images/Seafood-sustainability-awards/NZSSA-4.jpg

Seafood New Zealand interim chair Andre Gargiulo and Sarah Bynevelt.Site manager, Sarah Bynevelt, has transformed the remote Bluff Sanford fish processing facility from a traditionally effective unit to a high-performing hub of innovative practices that are often implemented company-wide. She's been hugely focused on reducing plastic, using every part of every fish so nothing goes to waste, and inspiring her team and community to make sustainability a priority. Sarah led Sanford's salmon division to recycle or repurpose over 1,300 tonnes of waste materials in 2022. That's 82.8% of waste diverted away from landfill.

https://www.stuff.co.nz/southland-times/300906004/sanford-site-manager-takes-future-leader-award-at-mpi-sustainability-awards

Sanford site manager takes future leader award at MPI sustainability awards

She now runs a team of 80 across Sanford’s fresh salmon processing plant in Bluff and was recently awarded the Ministry for Primary Industries Sustainability Future Leader Award for her transformation of the site from a traditionally effective unit to a high-performing hub of innovation.
She was hugely focused on reducing site waste and plastic as well as inspiring those around her to make sustainability a priority.

Their capacity to process salmon on this line had increased by 40%, people on the team have developed their own leadership skills and injuries have been reduced significantly.

[ralph]

https://www.mpi.govt.nz/about-mpi/our-work/mpi-scholarships-and-awards/new-zealand-seafood-sustainability-awards-2023/

New Zealand Seafood Sustainability Awards 2023

Future Leader Award Winner: Sarah Bynevelt

https://www.mpi.govt.nz/assets/On-page-images/Seafood-sustainability-awards/NZSSA-4.jpg

Seafood New Zealand interim chair Andre Gargiulo and Sarah Bynevelt.Site manager, Sarah Bynevelt, has transformed the remote Bluff Sanford fish processing facility from a traditionally effective unit to a high-performing hub of innovative practices that are often implemented company-wide. She's been hugely focused on reducing plastic, using every part of every fish so nothing goes to waste, and inspiring her team and community to make sustainability a priority. Sarah led Sanford's salmon division to recycle or repurpose over 1,300 tonnes of waste materials in 2022. That's 82.8% of waste diverted away from landfill.

https://www.stuff.co.nz/southland-times/300906004/sanford-site-manager-takes-future-leader-award-at-mpi-sustainability-awards

Sanford site manager takes future leader award at MPI sustainability awards

She now runs a team of 80 across Sanford’s fresh salmon processing plant in Bluff and was recently awarded the Ministry for Primary Industries Sustainability Future Leader Award for her transformation of the site from a traditionally effective unit to a high-performing hub of innovation.
She was hugely focused on reducing site waste and plastic as well as inspiring those around her to make sustainability a priority.

Their capacity to process salmon on this line had increased by 40%, people on the team have developed their own leadership skills and injuries have been reduced significantly.



Very nice Great Improvements ,Just hope they do not go to woke we know where that leads

[ronaldson]

NZX advised by Chair that Peter Reidie, CEO, has resigned but remaining on contract to assist with handover and some key projects, with existing Board member Craig Ellison appointed as interim CEO meantime.

Given that no search for a new CEO had begun that resignation must have been quite sudden/without notice. I wonder what is behind this.

[winner69]

NZX advised by Chair that Peter Reidie, CEO, has resigned but remaining on contract to assist with handover and some key projects, with existing Board member Craig Ellison appointed as interim CEO meantime.

Given that no search for a new CEO had begun that resignation must have been quite sudden/without notice. I wonder what is behind this.

He said - For me, after I’ve finished some important projects at Sanford, it’s time to move on and focus on family, personal and other commitments.”

[iceman]

He said - For me, after I’ve finished some important projects at Sanford, it’s time to move on and focus on family, personal and other commitments.”

I suggest people go back a few posts on this thread. It was clear from day one
to people with industry knowledge, that he was not the right person for this job and quickly made some stupid decisions. The stupid decisions were defended on this forum by, amongst other things, comparing Sanford with FBU. Where there is no comparison at all.
Sanford has lost a further 2 years with this appointment. Time for a clean out of the stupid woke Board that doesn’t know the first thing about the fishing industry

Ralph, Balance & Valuegrowth ! Any comments ?

[percy]

I suggest people go back a few posts on this thread. It was clear from day one
to people with industry knowledge, that he was not the right person for this job and quickly made some stupid decisions. The stupid decisions were defended on this forum by, amongst other things, comparing Sanford with FBU. Where there is no comparison at all.
Sanford has lost a further 2 years with this appointment. Time for a clean out of the stupid woke Board that doesn’t know the first thing about the fishing industry

"You must spread some Reputation around before giving it to iceman again".
Thanks Iceman for your "on the money" San posts.
Have saved me,and others from buying them.

[ronaldson]

He said - For me, after I’ve finished some important projects at Sanford, it’s time to move on and focus on family, personal and other commitments.”

Correct. But it is expected in such circumstances you give sufficient notice of resignation for the Board to search out a replacement appointment. In fact I would have thought that was at least a good faith term in all CEO employment contracts, unless compelling medical circumstances intervene.

So it does imply things/relationships are not travelling as they should.

[iceman]

"You must spread some Reputation around before giving it to iceman again".
Thanks Iceman for your "on the money" San posts.
Have saved me,and others from buying them.

I give it max 3-5 years and Sanford will be owned by Iwi. It may well be a good thing for Sanford and the industry, but not current SAN shareholders IMO.

[iceman]

Correct. But it is expected in such circumstances you give sufficient notice of resignation for the Board to search out a replacement appointment. In fact I would have thought that was at least a good faith term in all CEO employment contracts, unless compelling medical circumstances intervene.

So it does imply things/relationships are not travelling as they should.

Yes not travelling as they should. Board & CEO out of their depths

[ronaldson]

I give it max 3-5 years and Sanford will be owned by Iwi. It may well be a good thing for Sanford and the industry, but not current SAN shareholders IMO.

You may be right. I suspect another offer at $5.50 would succeed in mopping up at least enough for control and perhaps 90% would not be out of reach. The financial backing to achieve that could be beyond Ngai Tahu just now but if other iwi are engaged to partner then it should be doable.

[Sideshow Bob]

They aren't slow in updating their website.....!!

https://www.sanford.co.nz/about-sanford/executive-team/

[ronaldson]

They aren't slow in updating their website.....!!

https://www.sanford.co.nz/about-sanford/executive-team/

Yes, well worth a read. What is striking is that the senior executives listed are all recent appointments, so the underpinning management of this Company have been both realigned and refreshed.

And Craig Ellison, the interim CEO is a past CEO of Ngai Tahu Holdings and Chair of Ngai Tahu Seafoods, with extensive iwi and fishing industry background.

So I suggest the arrival of Ngai Tahu on the share register is clearly having an effect and they are intent on a shakeup which, having been a holder for many years, I always thought was necessary.

[ziptie]

Good to see that dip**** Peter Reide gone.

[Valuegrowth]

Very interesting development. Looking forward to see new CEO. My portfolio is filled with good defensive names.

[Sideshow Bob]

Director selling down.....

https://www.nzx.com/announcements/415911

[Southern Lad]

Director selling down.....



Ex director! - Mark Cairns resigned 28 February 2023.

[Sideshow Bob]

Ex director! - Mark Cairns resigned 28 February 2023.

Whoops.....my bad!!

[iceman]

This silly decision doesn’t bode well for Sanford’s consent application 5 kms away
https://www.newsroom.co.nz/pro/ngai-tahu-salmon-farm-refused-consent-over-environmental-impacts

[ronaldson]

Interesting that Sanford CEO/Director Craig Ellison was a Director of Ngai Tahu Seafoods Limited until he resigned with effect from 31 March. Perhaps someone pointed out he was potentially conflicted?

And it doesn't bode well for Sanford's consent application as you say. If you had approved the Ngai Tahu one it would have been difficult to refuse the other.

So where to now for ocean-based salmon farming? And for Ngai Tahu in its relationship with Sanford? Imagine the ructions if the Sanford application does get over the line and Ngai Tahu did not!

[iceman]

Interesting that Sanford CEO/Director Craig Ellison was a Director of Ngai Tahu Seafoods Limited until he resigned with effect from 31 March. Perhaps someone pointed out he was potentially conflicted?

And it doesn't bode well for Sanford's consent application as you say. If you had approved the Ngai Tahu one it would have been difficult to refuse the other.

So where to now for ocean-based salmon farming? And for Ngai Tahu in its relationship with Sanford? Imagine the ructions if the Sanford application does get over the line and Ngai Tahu did not!

I agree this bad decision puts the whole ocean-based farming into upheaval,. But it is not done in a constructive way but a way that is highly disruptive for the industry. I am all in favour of growing land based salmon farming but shutting growth in the ocean like this is NZ once again shooting itself in the foot when it becomes to primary industries.
I think the chances of Sanford's application being accepted are near zero after this decision. It will certainly make people, that have been thinking salmon should be Sanford's main or only focus, think again.

[ronaldson]

Lots of weasel wording in the Stuff report relating to the basis for refusal, including the panels difficulty in "appropriately valuing the cultural impact of the farm" which seems an overt way of saying that Ngai Tahu had some implied preferential argument and a superior "lens" to everyone else.

I wonder if any other areas of water in proximity to Stewart would be considered a better fit environmentally? If not then there will be some consternation at Minister/Ministry level given the closest the proposal came to shore was 2km. I did note thou (and this is nowhere referenced in the decision) that mapping of warming sea temperatures around NZ published recently show that in the vicinity of Stewart Is has among the highest level of increase.

We should all be interested where this issue of ocean farming goes from here.

[Rossimarnz]

Perhaps the answer is to go 12km offshore and outside of the reach of the RMA? It is done overseas.

[iceman]

Perhaps the answer is to go 12km offshore and outside of the reach of the RMA? It is done overseas.

Good luck with that off Stewart Island

[ralph]

Claire lenihan the government needs to kick these people in to touch ,environmental Barrister who worked for the constipation department for over fifteen years making a vast wealthy living out of putting her self Idealistic Interests first & not considering the country's/Stewart Islands future as a whole.
Where else in the world would a rampant environmentalist be put in charge of a panel making a decision like this ,the outcome was given the kiss of death when putting someone of that ilk running the show.
I am sure she got well paid for feathering her own nest.
Ngai tahu must be really pissed .
Another Industry given away to foreign competitors to save a possible seagull maybe .
I will continue eating norwegian Salmon then as its so much cheaper than home grown duh.
With the dairy killed of by these people fisheries will be next.

[ronaldson]

This is another share price under considerable market pressure at the moment, with virtually no buy side support to underpin.

I wonder if, at these prices, Ngai Tahu would consider a consortium to takeover altogether, or at least to 50%. Now we have Craig Ellison in charge (ex-CEO of Ngai Tahu Seafoods) they are in the driving seat and will be rueing paying $5.50 to take their existing stake which could now surely have been acquired significantly more cheaply.

Or a merger/takeover of Ngai Tahu Seafoods or perhaps NZ King Salmon? Need to understand what is the optimum way forward for SAN and given warming seas. At the moment it is hard to put any positive spin on prospects - certainly the market isnt!

[silverblizzard888]

The share price has actually held up considering the financial performances over the last couple of years, it looks like this year the performance maybe more reasonable and the pricing they are getting for their products keeps rising. The market more or less trying to price this stock at a PE of 15 with the current valuation predicting a $20m NPAT for the full year not including one off gains. Don't really see much of an upside for the stock yet.

[iceman]

The share price has actually held up considering the financial performances over the last couple of years, it looks like this year the performance maybe more reasonable and the pricing they are getting for their products keeps rising. The market more or less trying to price this stock at a PE of 15 with the current valuation predicting a $20m NPAT for the full year not including one off gains. Don't really see much of an upside for the stock yet.

SAN has great and very valuable assets but they have mismanaged them and sold some off in the last few years. So far, I see nothing to indicate they are on top of it. Very sad.

[ronaldson]

SAN has great and very valuable assets but they have mismanaged them and sold some off in the last few years. So far, I see nothing to indicate they are on top of it. Very sad.

Iceman - That's true. Although the last intended transaction is to sell Annual Catch Entitlement ( to Aotea Fisheries Limited, trading as Moana New Zealand) for North Is inshore fisheries, rather than the underlying quota, for a minimum term of 10 years. This was announced in May but subject to both Commerce Commission approval and Sanford agreeing acceptable terms for the discontinuation of a toll processing arrangement with an existing customer. Settlement was due in FY23 ie by end September and would be accompanied by the sale of some vessels and plant and be followed by closure of Sanford's Auckland fish processing facility with possible transfer of related staff.

So quite a major strategic change, presumably with inherent value to Sanford. I looked on the CC website and it seems a decision is imminent, possibly even today which shows as a deadline at the CC.

As you know, Sanford also initiated a divisional restructure into Wildcatch, Salmon and Mussel activities with more decision-making and operational autonomy for each. The Financial Statements for FY23 when they are released (November) will be the first to reflect this adjustment.

While there are not many green shoots one positive for this Company is the relatively small number of shares on issue, around 94m so a 1c dividend requires only $940k profit to underpin (I know - payout ratios are usually less than 100%, but a return to real profitability would make a big difference). NTA per share is markedly more than the current share price, and the relatively recent quota disposals, especially crayfish, indicate that the remaining quota carry value in the accounts may be significantly understated. But then the sea temperature warming, and other environmental factors, suggest the future of the industry is potentially murkier.

[ronaldson]

Iceman - That's true. Although the last intended transaction is to sell Annual Catch Entitlement ( to Aotea Fisheries Limited, trading as Moana New Zealand) for North Is inshore fisheries, rather than the underlying quota, for a minimum term of 10 years. This was announced in May but subject to both Commerce Commission approval and Sanford agreeing acceptable terms for the discontinuation of a toll processing arrangement with an existing customer. Settlement was due in FY23 ie by end September and would be accompanied by the sale of some vessels and plant and be followed by closure of Sanford's Auckland fish processing facility with possible transfer of related staff.

So quite a major strategic change, presumably with inherent value to Sanford. I looked on the CC website and it seems a decision is imminent, possibly even today which shows as a deadline at the CC.

As you know, Sanford also initiated a divisional restructure into Wildcatch, Salmon and Mussel activities with more decision-making and operational autonomy for each. The Financial Statements for FY23 when they are released (November) will be the first to reflect this adjustment.

While there are not many green shoots one positive for this Company is the relatively small number of shares on issue, around 94m so a 1c dividend requires only $940k profit to underpin (I know - payout ratios are usually less than 100%, but a return to real profitability would make a big difference). NTA per share is markedly more than the current share price, and the relatively recent quota disposals, especially crayfish, indicate that the remaining quota carry value in the accounts may be significantly understated. But then the sea temperature warming, and other environmental factors, suggest the future of the industry is potentially murkier.



The Commerce Commission website now indicates that today the Commission cleared the above transaction with Aotearoa Fisheries Limited (Moana) to proceed. The decision reasoning will be published later.

Therefore I expect the deal to settle by month end as originally proposed, and the Auckland fish processing facility operated by Sanford to close more or less contemporaneously.

This is a significant simplification for Sanford operationally, although obviously not much impact on outcomes for FY23.

[Sideshow Bob]

NZCC grants clearance for sale of ACE to Moana

https://www.nzx.com/announcements/418102

Commerce Commission grants clearance for sale of ACE to Moana New Zealand

On 22 May 2023, Sanford announced that it had agreed to sell the Annual Catch Entitlement (ACE) for much of its quota of North Island inshore species to Moana New Zealand through a new long-term agreement. The decision to enter into this transaction followed an internal review seeking to turnaround the inshore division, which was one of four strategic priorities announced in Sanford’s 2022 Strategic Refresh.

The New Zealand Commerce Commission has now granted Moana a clearance in respect of the transaction. Sanford welcomes this decision and will now switch its focus towards satisfying the other remaining condition.

The proposed transaction will greatly simplify inshore operations and establish a lower-risk annuity-like revenue stream for Sanford’s North Island inshore ACE. The value for this package of ACE starts at nearly $11m (annualised) for the first year and scales up to $13m over the next five years before increasing in fixed increments of 1.5% per annum, against modest expenses. This will reduce the negative impact these operations are currently having on Sanford’s bottom line. Overall, the transaction reduces volatility for Sanford’s earnings and enables a re-focus on higher return parts of the business.

We will keep the market informed once the transaction becomes unconditional.

[kiora]

Sanford have only "sold" the ACE not the quota itself?

[iceman]

Sanford have only "sold" the ACE not the quota itself?

If you're talking about the Moana arrangement, then yes that is correct. Crayfish, Tasmanian quota and pelagic species have been straight out sales.

[ronaldson]

Some tidying up going on in this industry, with Sealord now announcing it is seeking the regulatory approvals to acquire Independent Fisheries business for around $500m. Independent Fisheries has NZ's fourth largest deepwater fishing quota ownership, around 46000 tons.

One might infer that there are industry-wide issues around profitability which need to be remediated by scaling up, closures or transfers to allow operators/fishers to make the most of available and potential outcomes.

I wonder what else might come out of the woodwork?

[ronaldson]

NZCC grants clearance for sale of ACE to Moana

https://www.nzx.com/announcements/418102

Commerce Commission grants clearance for sale of ACE to Moana New Zealand

On 22 May 2023, Sanford announced that it had agreed to sell the Annual Catch Entitlement (ACE) for much of its quota of North Island inshore species to Moana New Zealand through a new long-term agreement. The decision to enter into this transaction followed an internal review seeking to turnaround the inshore division, which was one of four strategic priorities announced in Sanford’s 2022 Strategic Refresh.

The New Zealand Commerce Commission has now granted Moana a clearance in respect of the transaction. Sanford welcomes this decision and will now switch its focus towards satisfying the other remaining condition.

The proposed transaction will greatly simplify inshore operations and establish a lower-risk annuity-like revenue stream for Sanford’s North Island inshore ACE. The value for this package of ACE starts at nearly $11m (annualised) for the first year and scales up to $13m over the next five years before increasing in fixed increments of 1.5% per annum, against modest expenses. This will reduce the negative impact these operations are currently having on Sanford’s bottom line. Overall, the transaction reduces volatility for Sanford’s earnings and enables a re-focus on higher return parts of the business.

We will keep the market informed once the transaction becomes unconditional.

No announcement yet regarding completion of this transaction despite the original advice to the market anticipating this would occur by 30 September, so this won't now happen in FY23 just past.

The NZCC decision granting consent occurred on 12 September. The remaining condition was said to be Sanford agreeing acceptable terms for the discontinuation of toll processing (I presume in Auckland) with an existing toll processing customer. That has not yet perhaps occurred despite the transaction being published in May, although overall the proposed arrangement had its complexities so far as final settlement would be concerned.

Meantime the share price continues to drift lower, albeit the general NZX market shows similar malaise.

Hopefully we will be better informed how it all is shortly. And the incoming Government may take some more positive steps around this industry sector? Luxon certainly seems determined to have a more businesslike focus to country governance whatever the make-up of Cabinet/the Parties actually is.

[ronaldson]

Moana transaction now unconditional and expected to settle later today.

SAN will now move to wind down its Auckland factory operations whilst facilitating the employment of affected staff with Moana where practicable.

This strategic step for Sanford is now essentially completed, but not within the FY23 financial year (ending 30 Sept) as originally hoped.

No news yet regarding Sealord's application for regulatory approvals to acquire Independent Fisheries for around $500m but it is clear the industry is incrementally restructuring by scaling up, transfers or closures to address the significant underlying issues and general lack of profitability.

I still say Ngai Tahu will not be happy with the current sub $4 share price and poor dividend return given their relatively recent acquisition cost at $5.50, where it has been all downhill since. So what can/will be done to turn this around?

[iceman]

Moana transaction now unconditional and expected to settle later today.

SAN will now move to wind down its Auckland factory operations whilst facilitating the employment of affected staff with Moana where practicable.

This strategic step for Sanford is now essentially completed, but not within the FY23 financial year (ending 30 Sept) as originally hoped.

No news yet regarding Sealord's application for regulatory approvals to acquire Independent Fisheries for around $500m but it is clear the industry is incrementally restructuring by scaling up, transfers or closures to address the significant underlying issues and general lack of profitability.

I still say Ngai Tahu will not be happy with the current sub $4 share price and poor dividend return given their relatively recent acquisition cost at $5.50, where it has been all downhill since. So what can/will be done to turn this around?

Yes lots of change happening. Sealord expanding, Moana expanding, Talley's just announced a newbuild factory trawler, Aurora Seafoods newbuild factory trawler. Sanford doing ok in aquaculture & building a new scampi boat (years overdue) but retreating elsewhere on the fishing side of the business. Until we see what their strategy is and where they want to place themselves in the industry going forward, I suspect the SP will languish.

[ronaldson]

Ngai Tahu forced to write down the value of its investment portfolio, which includes its direct holding in SAN.

And another Director gone/not standing for re-election at the SAN AGM, which suggests Board restructure/business change here is ongoing.

I believe the FY23 Financial Statements will be the first formatted under the divisional restructure/realignment undertaken previously as part of a more transparent basis of operational reporting to help drive business improvement. Now that the Moana transaction has also been completed it will be interesting to compare FY23 later this month and then the coming half year result to 31 March 2024.

This is not an easy industry to be in just now.

[ronaldson]

Wow - NZ Herald reporting the following formal statement by Sanford Director Abby Foote who resigned last week with immediate effect :-

" I am no longer aligned with the view of the majority of the Board as to the best interests of the organisation in particular as it relates to the actions by significant but minority shareholders which are making it increasingly difficult to govern the organisation in accordance with the expectations of the NZX Corporate Govrnance Code and my view as to good practice for listed companies".

This can only be a reference to Ngai Tahu influences.

[ronaldson]

Interesting that Sanford CEO/Director Craig Ellison was a Director of Ngai Tahu Seafoods Limited until he resigned with effect from 31 March. Perhaps someone pointed out he was potentially conflicted?

And it doesn't bode well for Sanford's consent application as you say. If you had approved the Ngai Tahu one it would have been difficult to refuse the other.

So where to now for ocean-based salmon farming? And for Ngai Tahu in its relationship with Sanford? Imagine the ructions if the Sanford application does get over the line and Ngai Tahu did not!

So here we had Ngai Tahu ( thru their own seafoods entity) applying for ocean based salmon farm only about 5Km away from a similar Sanford application. Notwithstanding Ngai tahu's application was refused (but probably appealable) this is self evidently a conflicted circumstance which may well be one factor at play here. Not hard to see there may be underlying issues.

And what else is there? Oliver - Where are you?

[ronaldson]

FY result to 30 September 2023 and the Annual Report to be released to NZX tomorrow. No indication in the announcement as to when there will be a conference call to take questions so that should be stated in the release itself.

I will be endeavouring to be online when that occurs, and it should be a doozy! No wonder the Herald say no one is available today as they are all in a meeting ahead of the announcement! Reeks of damage control.

[TFA]

Ngai Tahu forced to write down the value of its investment portfolio, which includes its direct holding in SAN.

And another Director gone/not standing for re-election at the SAN AGM, which suggests Board restructure/business change here is ongoing.

I believe the FY23 Financial Statements will be the first formatted under the divisional restructure/realignment undertaken previously as part of a more transparent basis of operational reporting to help drive business improvement. Now that the Moana transaction has also been completed it will be interesting to compare FY23 later this month and then the coming half year result to 31 March 2024.

This is not an easy industry to be in just now.
While it's apparent that all is not well in the camp given the continuation of the exodus at senior exec and board level, don't believe you are correct in saying that Ngai Tahu have written down their investment in Sanford.

[Oliver Mander]

So here we had Ngai Tahu ( thru their own seafoods entity) applying for ocean based salmon farm only about 5Km away from a similar Sanford application. Notwithstanding Ngai tahu's application was refused (but probably appealable) this is self evidently a conflicted circumstance which may well be one factor at play here. Not hard to see there may be underlying issues.

And what else is there? Oliver - Where are you?

Not too far away Ronaldson...
The below is what I sent in our weekly Briefing on Saturday morning (ie, ahead of Business Desk and the Herald :)).
Full kudos to Abby Foote for taking the plunge to make such a public - and refreshingly honest - statement.
More to come no doubt.

TROUBLE AT SANFORDS?
We can't help noticing the announcement this week that independent Director Abby Foote has resigned (https://nzshareholders.us10.list-manage.com/track/click?u=6c55fc196938808c06f995d64&id=170642ef98&e=931d398540) from the Board of Sanford. This follows the August resignation of CEO Peter Reidie earlier in the year and February's resignation of high-profile director Mark Cairns, after only 1.5 years on the Board.

Is this a case of 20% shareholder Ngai Tahu investments flexing its muscle? Ngai Tahu are an experienced and capable investor, but Sanford's represents one of their few forays into their listed issuer space. We would hope the resignation of two independent directors does not result in reduced outcomes for minority shareholders nor a degradation in governance practices.

With Sanford's annual shareholder meeting coming up, we will be looking to meet with the company's representatives later this month ahead of releasing our own assessments. It should be an interesting discussion.

[iceman]

So here we had Ngai Tahu ( thru their own seafoods entity) applying for ocean based salmon farm only about 5Km away from a similar Sanford application. Notwithstanding Ngai tahu's application was refused (but probably appealable) this is self evidently a conflicted circumstance which may well be one factor at play here. Not hard to see there may be underlying issues.

And what else is there? Oliver - Where are you?

You’re not wrong. The “underlying issues” include a Ngai Tahu person now being the interim CEO. He is hugely experienced in the seafood industry but this whole process and overall state of Sanford, is of serious concern.

[Sideshow Bob]

https://www.nzx.com/announcements/421580

Summary:
• Highest revenue result in five years, at $553.4m, despite lower volumes
• Net Profit After Tax of $10.0m
• Adjusted earnings (EBIT) of $49.4m, continuing positive climb back to pre-covid levels
• Final dividend of 6 cents per share, taking total FY23 dividends to 12cps

Sanford Limited (NZX: SAN) has reported its results for the financial year ended 30 September 2023, delivering its highest revenue result in the past five years and a continuing improvement in adjusted profit as momentum progresses towards pre-covid profit levels.

The company continues to execute on its five year strategy to ‘recover, rebuild and outperform’ following the impact of the pandemic on the business. The commercial focus is on three pathways – Grow Salmon, Grow Mussels and Strengthen Wildcatch. Good progress has been made over the financial year, despite headwinds for the business and the industry.

Sanford Chair, Sir Rob McLeod, said: “We have a clear view of the commercial pathways for our business and are seeing positive benefits from our strategy, which was refreshed in 2023. Many of the headwinds seen over the past few years are now easing and we expect the trend of annual improvement to be repeated in FY24."
“This year has seen the implementation of a new organisational structure, new technology platforms and new leadership. On behalf of the Board, we thank our people for their commitment and support of these key reforms, and their contributions to our performance."

“Our primary goal remains improved profitability. We are clearly on the path to recovery, and it is pleasing to deliver a stronger result for our shareholders.”

Commercial Progress
The Salmon business continued to perform strongly in FY23 with profitability ahead of schedule. This was supported by strong branding and pricing, and improved efficiencies. The focus is on both growing farm volumes within existing limits, as well as seeking the opportunity to expand capacity. Investment has been made in state of the art facilities, fleet and technologies to meet the growing global demand for this exceptional product.

The Mussel business has been slower to recover post-covid, with labour issues, particularly processing staff, at the fore. This limited Sanford’s ability to take advantage of higher levels of demand during the year. Teams have now been rebuilt to full strength, positioning the business well to maximise the season ahead. Water space closures and inclement weather also adversely impacted the Mussel business in FY23. However, the upcoming change in weather patterns is expected to assist mussel performance, although low seeding, particularly in Coromandel in 2023, will affect 2024 volumes. Market demand has continued to grow and Sanford has invested to expand mussel production to ensure a reliable supply of top-quality Greenshell mussels.

The Wildcatch business is being transformed, with the simplification of inshore operations and creation of an annuity-like revenue stream through the sale of much of Sanford’s North Island inshore Annual Catch Entitlement (ACE) to Moana New Zealand. Sanford will continue its focus on deepwater (which remains the largest business segment), South Island inshore fishing and Australia. FY23 sales volumes were affected by seasonal factors impacting on squid catch, which was down 58% year on year. Margins were also under pressure from increasing fuel costs and labour shortages. The focus is on improving operational efficiencies and maximising customer demand.

Financial Performance

FY23 revenue of $553.4m reflects strong pricing and customer demand, as well as improved operating conditions across all three divisions. The year-on-year increase was despite a reduction in volumes driven by seasonal factors resulting in a lower squid catch, the planned moderation in the inshore business and lower mussel volumes due to labour shortages.

Adjusted EBIT of $49.4m was up 23%, as earnings continue their positive climb back to pre-covid levels. This excludes $18.4m of non-trading adjustments, compared to $12.6m in the prior year. In particular, FY23 included $5.5m in restructuring costs as the North Island inshore business closed, as well as a $2.2m gain following the surrender of a lease at the Port of Tauranga.

Sanford’s FY23 reported EBIT was $31.0m, up 12.3% on $27.6m in the prior year.

Reported Net Profit After Tax (NPAT) includes non-trading adjustments and unusual transactions. In the prior year, NPAT included a one-off $43.7m gain on the sale of crayfish quota. FY23 NPAT was $10.0m.

Net debt increased by $51m to $196m, with ongoing capital investment, particularly the new scampi vessel, the Sancore technology programme and the Sanford Bioactives facility. A two year, major maintenance programme has been approved on four wildcatch vessels, which will commence in FY24. Gearing at 22.9% remains within the parameters set by the Board, reflecting a prudent and strategic financial management approach. Sanford has total facilities of $250m, providing sufficient headroom for continued investment in capital projects (including fleet and technology) and to explore growth initiatives.

Operating cashflow of $41.1m remained at strong levels.

A final, fully imputed dividend of 6 cents per share was declared by the Board, taking full year dividends to 12 cents per share.

Outlook

Sanford anticipates a stronger year in FY24, as it continues to focus on achievement of commercial and profit goals.

Wildcatch profitability is expected to improve with the focus on operational efficiency and following the North Island inshore ACE sale.

Strong mussel pricing and demand is expected to continue into 2024, although the ability to maximise this will be partly restricted due to low seeding in 2023 as a result of weather conditions. The new Sanford Bioactives facility, commissioned earlier in the year, continues to experience productivity issues and is behind expectations. This is an area of focus for the business. Sanford’s Mussel business remains in a strong position with water space and infrastructure, and with processing teams now back to full strength.

Salmon is expected to continue its positive momentum, with strong demand for King salmon and Sanford’s Big Glory Bay brand. The focus will be on sustaining margins through ‘smart farming’ and the business is exploring the use of AI and automation. A new feed barge is arriving in March 2024, which will benefit farm infrastructure.
Sir Rob commented: “Sanford has been at the forefront of the New Zealand’s seafood industry for over a century and we remain committed to fishing, harvesting, processing and delivering quality seafood in a sustainable manner. We have a clear strategy and pathways to rebuild our profitability and outperform over the next three years. Our team is working hard and we look forward to delivering increasing value to our shareholders.”

[Sideshow Bob]

https://businessdesk.co.nz/article/markets/ngai-tahu-targeting-sanfords-board?utm_source=7am+Headlines+from+BusinessDesk&utm_campaign=26e9cada3e-7am+Headlines&utm_medium=email&utm_term=0_617c2ef34a-26e9cada3e-402467359 (Paywalled)

[Sideshow Bob]

More board room fun at Sanford, with John Strowger (Skellerup chairman) being nominated. Being nominated by Tasman Equites, he isn't an independent.

Skellerup CEO David Mair is on the board, as is another Skellerup board member, Selwyn Cushing. Also Strowger's partner is sister-in-law to the Sanford chair (well it is NZ after all - 1.5 degrees of separation!!).

[ronaldson]

And did anyone notice the recent Forbar analysis of the NZX50 Index has SAN at 48th place in market capitalisation with a six month average price at $4.04 (hence predicting TRA at 49th and GTK at 37th are the likely to be the next announced additions and PEB and SML the deletions).

Given the market price recently I would suggest SAN will potentially be "promoted" to the exit list sometime soon in 2024, which will then be accompanied by further negative pressure on the share price!

[Oliver Mander]

Hi all...Just a bit more information on Sideshow Bob's post above. Might be interesting reading.
What is the Board at Sanford's thinking? - New Zealand Shareholders' Association (nzshareholders.co.nz) (https://www.nzshareholders.co.nz/scrip-article/what-is-the-board-at-sanfords-thinking/)

Remember that anyone can utilise NZSA's proxy service - you don't have to be a member (althugh we;d love it if you were :)).

Oliver Mander
(NZSA CEO)

[iceman]

More on the concerning state of affairs at Sanford. From Jenny Ruth this time:

No end in sight to Sanford board, shareholder ructions
JENNY RUTH'S JUST THE BUSINESS

DELETED DELETED

[Jenny Ruth]

Thanks, iceman, but please don't post my work here again. And particularly don't do it next year after I start charging. I'm trying to make a living for my work and if it's given away for free, that should be my decision and not anybody else's. It does amount to theft. A link to my Substack, Just the Business is very acceptable. Cheers

[blackcap]

Thanks, iceman, but please don't post my work here again. And particularly don't do it next year after I start charging. I'm trying to make a living for my work and if it's given away for free, that should be my decision and not anybody else's. It does amount to theft. A link to my Substack, Just the Business is very acceptable. Cheers

Jenny, question. If you post an essay on the internet, and I can access it for free. Who are you to say that I cannot post it elsewhere? Is that really theft? I found it lying around. I am free to distribute as I see fit right? I mean Iceman could just have linked to your substack where the article is that he posted is available. This just made it easier for readers here. To accuser of theft is a bit excessive. (Totally understand if it is behind a paywall or something, but that would be different)

[Jenny Ruth]

It's my work. And I'm the publisher. There's a law called copyright. Unfortunately, newspaper publishers were silly enough to start posting news and commentary for free on the internet and now everybody thinks it's OK to rip off work that doesn't belong to them. My Substack will be behind a paywall from when I resume publishing early in the new year and I will take an extremely dim view of anybody that reproduces a column holus bolus. As I said, links to my Substack are very acceptable. I hope that's clear

[blackcap]

It's my work. And I'm the publisher. There's a law called copyright. Unfortunately, newspaper publishers were silly enough to start posting news and commentary for free on the internet and now everybody thinks it's OK to rip off work that doesn't belong to them. My Substack will be behind a paywall from when I resume publishing early in the new year and I will take an extremely dim view of anybody that reproduces a column holus bolus. As I said, links to my Substack are very acceptable. I hope that's clear

I hear what you are saying, but if you put stuff on the internet on a substack for free, then I and anyone else is free to take that and do with it what I want. I think the law is quite clear on that too. Once paywalled, well that is a different story.

[kiwikeith]

Jenny, question. If you post an essay on the internet, and I can access it for free. Who are you to say that I cannot post it elsewhere? Is that really theft? I found it lying around. I am free to distribute as I see fit right? I mean Iceman could just have linked to your substack where the article is that he posted is available. This just made it easier for readers here. To accuser of theft is a bit excessive. (Totally understand if it is behind a paywall or something, but that would be different)

Finding something lying around does not make it yours. eg if you find a wallet on the street with money in it you are legally obliged to make reasonable attempts to find the owner before you can consider it yours. Most people would hand it in to the police. In the Uk there have been prosecutions of people who kept money they found in cash point machines. (pretty easy to find the culprit with cameras and good chance it was the next customer to use the machine). Finders keepers is a saying but is not the law.

[blackcap]

Finding something lying around does not make it yours. eg if you find a wallet on the street with money in it you are legally obliged to make reasonable attempts to find the owner before you can consider it yours. Most people would hand it in to the police. In the Uk there have been prosecutions of people who kept money they found in cash point machines. (pretty easy to find the culprit with cameras and good chance it was the next customer to use the machine). Finders keepers is a saying but is not the law.

I know that. But I am not finding something. She is writing this and posting it for free on the internet. It is not something that needs to be returned to the owner. Multiple copies of this essay/writing can be made. I note that in the article, she also uses a lot of references and words from other people, Oliver Mander in particular. It could be argued that she has copied his words and made an article of it (with appropriate references).

I believe in the post that Iceman posted, it was quite clear that Jenny was the author of said work.

[RTM]

I know that. But I am not finding something. She is writing this and posting it for free on the internet. It is not something that needs to be returned to the owner. Multiple copies of this essay/writing can be made. I note that in the article, she also uses a lot of references and words from other people, Oliver Mander in particular. It could be argued that she has copied his words and made an article of it (with appropriate references).

I believe in the post that Iceman posted, it was quite clear that Jenny was the author of said work.

I understand what you are getting at BlackCap, and you are probably correct legally, but from a good manners / etiquette standpoint, I think Jenny has made a very reasonable request.

[Baa_Baa]

If an article is marked as copyright, or published in a place that is copyrighted, then posting it here contravenes the terms of use for this website https://www.tarawera.co.nz/terms.html

[iceman]

Thanks, iceman, but please don't post my work here again. And particularly don't do it next year after I start charging. I'm trying to make a living for my work and if it's given away for free, that should be my decision and not anybody else's. It does amount to theft. A link to my Substack, Just the Business is very acceptable. Cheers

My apologies. I have long ago signed up to your newsletter when you start charging but as it is free and publicly available at present, I didn’t think there was anything wrong with posting it.
I have deleted the post

[winner69]

If an article is marked as copyright, or published in a place that is copyrighted, then posting it here contravenes the terms of use for this website https://www.tarawera.co.nz/terms.html

You the only one who has read the T&Cs …that was up to now lol

Wonder if Jenny is aware of the one marked 3)

[iceman]

I understand what you are getting at BlackCap, and you are probably correct legally, but from a good manners / etiquette standpoint, I think Jenny has made a very reasonable request.

Absolutely Jenny made a valid point, except for accusing me of theft. I found that disappointing and have kindly told Jenny so. But her articles are bloody good 👍

[iceman]

Herald reporting today that Sanford is considering closing the Fish Market and selling the ground leases to apartment developers. While not surprising that they will continue asset sales, it would be a real shame for the Viaduct area to lose the gem that the Fish Market is.

[Perky]

Yeah I agree. Have lived locally for over 30 years…within 1K of the market. I think the building in front of sandfords the wool sheds is also up for development by panuku whatever the face (council)
Actually I remember the days the old wooden storage sheds where still on fanshawe st where air nz and kiwibank are now.
The fishing boats bobbing in their basin, ladies of the night lurking in the shadows, mate if you got through their late at night without incident…life was good…you felt like a f… pirate

The viaduct probably not the easiest place for fish processing plant now…it has always smelt a bit pongy…fishy like lol
I can imagine the nimbys that have recently moved into their appartments complain often….even though the fish market been there forever before the nimby…bit like western springs…people buy a house there and complain about the speedway and concerts…duh

They redeveloped the retail concept a few years back…got the flash retail design company Izzard..all looks good but they stripped the heart and soul out of that place….could be any food hall anywhere in the world.

I preferred the old school market where you just browsed the big space, took your whole fish up to the bench and stand behind some cheap Perspex screen while either a big brawny island fella or skinny nimble Asian fella would put on a show with his knife skills and chop your fish however you wanted before you got a free shower as those hosed the bench…it was a skill to decide how close you stood to the Perspex screen.

I reckon Sanford missed a trick…should of just been a place you got the best value freshest seafood served simply
A Kiwi seafood experience…
bowl of steamed mussels, white bait fritter in white bread, mussel fritter, oyster raw half shell, fish and chips, crayfish half steamed or bbq

when I used to go the the Auckland seafood festival..this is what food people where offering in their stalls
when you go to sandfords today your getting a mcdonalds seafood experience…you can get a lobster roll with chips and a beer from a brand callled lobster and tap..For the lobster lovers - a whole menu dedicated to premium Canadian wild-caught lobster.

sorry for my ramble. I don’t have sandfords shares…always thought about them but hopefully my observations over the last 3o years matched the sandfords share performance..a great place that lost its way in a modern world.

would be sorry to see them close

[Sideshow Bob]

Great post Perky. :)


you felt like a f… pirate

Classic!! :laugh:

[Perky]

Rrrr me matey
as winner always tells us….it’s the story that counts
Sandfords is a tragedy or tale of woe

share price follows the story

[iceman]

Yeah I agree. Have lived locally for over 30 years…within 1K of the market. I think the building in front of sandfords the wool sheds is also up for development by panuku whatever the face (council)
Actually I remember the days the old wooden storage sheds where still on fanshawe st where air nz and kiwibank are now.
The fishing boats bobbing in their basin, ladies of the night lurking in the shadows, mate if you got through their late at night without incident…life was good…you felt like a f… pirate



hahaha. Yes I remember those times well. Don't know how many times we swam across to the Wynyard Quarter on our early morning crawls back from the downtown establishments heading back to the boat, when the blimmin bridge was up :-)
No idea what you mean with "ladies of the night" though !

[Sideshow Bob]

https://www.stuff.co.nz/business/133459248/the-paper-is-incoherent-mayor-puts-auckland-fish-market-sale-discussion-on-ice?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Monday+18+D ecember+2023

The plan for the Auckland Fish Market site is 'incoherent'.

I thought that was normally just Brown??

[Sideshow Bob]

AGM speeches and preso!!

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SAN/423725/409795.pdf
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SAN/423725/409796.pdf

[Ferg]

Thanks Sideshow Bob. Encouraging reading.

[Bikeguy]

Q1 results are pretty promising, and the simplified business model they are creating /building seems to be coming along, will wait for the half year results but paying more attention now…

[ronaldson]

Peter Reidie (former CEO) has sold his shareholding on market last week. Another not to show confidence in the future of a troubled entity struggling to get runs on the board!

[iceman]

SAN
19/02/2024 08:30
ADMIN
NOT PRICE SENSITIVE
REL: 0830 HRS Sanford Limited (NS)

ADMIN: SAN: Sanford Appoints Independent Director

Sanford Appoints Independent Director

The Board of Sanford Limited (Sanford) (NZX: SAN) is pleased to announce the
appointment of Thomas (Tom) McClurg to the Board of Directors as an
Independent Director with effect today.

Tom is Ngati Mutunga o Wharekauri and has over thirty years' experience in
numerous primary sector natural resource management and policy roles in New
Zealand. Tom has held senior executive positions with Government, Te Ohu Kai
Moana, Aotearoa Fisheries Limited, the corporate finance practice of Ernst &
Young and Landcorp Farming Limited.

Sanford's Chair, Sir Rob McLeod, says he is delighted to welcome Tom to the
Sanford Board. "Tom's experience in governance and advisory roles,
particularly regarding his various roles within the primary industry, makes
him an ideal addition to Sanford's Board. Tom's extensive knowledge and
understanding of the seafood and fisheries sector will bring significant
value and perspective to the Board."

Tom currently holds a number of director roles including as a director of
Toroa Strategy Limited, the Ngati Mutunga o Wharekauri Asset Holding Company,
Port Nicholson Fisheries (Koura Inc GP) and is Chairman of Commercial
Fisheries Services Limited (Fishserve). In addition to local advisory roles
with clients including Te Tumu Paeroa and Te Ohu Kai Moana, he has been
engaged by the World Bank, NZAid, PNA Office and other organizations to
provide fisheries management and commercial fisheries advice in West Africa,
the Middle East, and the Pacific.

Tom has a rural upbringing with a bachelor's degree in Agricultural Science,
Rural Land Valuation registration and a master's degree in Natural Resource
Management.

Tom will retire and seek election by shareholders at Sanford's 2024 annual
shareholders' meeting. After careful consideration of all relevant matters,
the Sanford Board has determined that Tom is an Independent Director for the
purposes of the NZX Listing Rules.

For further information, please contact:

Paul Alston
Chief Financial Officer
palston@sanford.co.nz
021 918 033
End CA:00426368 For:SAN Type:ADMIN Time:2024-02-19 08:30:39

[ronaldson]

Interesting SPH Notice from ANZ today indicating they have acquired almost the entirity of a 5% stake in SAN on-market since December.

Someone has concluded the share is cheap at current pricing given quota and other assets. Not to mention moves by the current Government to free up consenting, including maritime.

Not that the market is saying so with regard to price. As this is just a required initial disclosure having reached the threshold I wonder if buying will continue?

[Bikeguy]

Interesting SPH Notice from ANZ today indicating they have acquired almost the entirity of a 5% stake in SAN on-market since December.

Someone has concluded the share is cheap at current pricing given quota and other assets. Not to mention moves by the current Government to free up consenting, including maritime.

Not that the market is saying so with regard to price. As this is just a required initial disclosure having reached the threshold I wonder if buying will continue?

SAN, like a number of companies (A2M etc) took some fairly impressive hits when COVID impacted, now that things have stabilised, freight, labour etc SAN stand to benefit from higher sales revenue vs stabilised costs.
ANZ Investing would be pretty diligent in their due diligence, they haven’t parked money in till now so they are aware of something they like.

[iceman]

SAN, like a number of companies (A2M etc) took some fairly impressive hits when COVID impacted, now that things have stabilised, freight, labour etc SAN stand to benefit from higher sales revenue vs stabilised costs.
ANZ Investing would be pretty diligent in their due diligence, they haven’t parked money in till now so they are aware of something they like.

I'm sorry but I can not agree with this. Nothing has "stabilised" for SAN. Yes we are out of COVID but it wasn't all bad for seafood sales. Contrary to what you say, freight has NOT stabilised and is currently as bad as ever with the Houthi attacks in the Red Sea and vessels going around Cape of Good Hope, creating huge delays, lack of containers and extra costs.
Neither has labour gotten better for SAN. Some of their vessels are sailing short crewed with limited production capabilities, trip after trip.
Then you have the lack of a decent long term CEO and the resignations from the Board.
SAN in my view is still not investable except as a punt.

They are currently having a good squid season with decent catches and high prices, but a late start. The just finished toothfish season in the Ross Sea was a disappointment. Their hoki vessels still catching a fraction of what similar Talley's vessel catch.

There is a lot to fix at SAN and I can't wait for it to happen. But until I see a turn for the better, I'm not touching this share.

Salmon is doing very well for them though and that is great.

[Bikeguy]

I'm sorry but I can not agree with this. Nothing has "stabilised" for SAN. Yes we are out of COVID but it wasn't all bad for seafood sales. Contrary to what you say, freight has NOT stabilised and is currently as bad as ever with the Houthi attacks in the Red Sea and vessels going around Cape of Good Hope, creating huge delays, lack of containers and extra costs.
Neither has labour gotten better for SAN. Some of their vessels are sailing short crewed with limited production capabilities, trip after trip.
Then you have the lack of a decent long term CEO and the resignations from the Board.
SAN in my view is still not investable except as a punt.

They are currently having a good squid season with decent catches and high prices, but a late start. The just finished toothfish season in the Ross Sea was a disappointment. Their hoki vessels still catching a fraction of what similar Talley's vessel catch.

There is a lot to fix at SAN and I can't wait for it to happen. But until I see a turn for the better, I'm not touching this share.

Salmon is doing very well for them though and that is great.

I appreciate your thoughts, I can always learn something if I keep my eyes and ears open so thank you.
Can I ask though, why would sea freight be impacting SAN, isn’t their product mostly high end air freight?
Do you believe ANZ investment are just taking a punt? That’s a decent amount to gamble…

[iceman]

I appreciate your thoughts, I can always learn something if I keep my eyes and ears open so thank you.
Can I ask though, why would sea freight be impacting SAN, isn’t their product mostly high end air freight?
Do you believe ANZ investment are just taking a punt? That’s a decent amount to gamble…

Most of their seafood is shipped in containers.
I have no idea what ANZ are doing. Ngai Tahu is slowly building up stake and taking more control. Will be interesting to watch (from the sidelines) how that plays out.

Sanford is a great company with good assets (quota), but I despair at the poor management we’ve seen for the last few years

[ronaldson]

Interesting SPH Notice from ANZ today indicating they have acquired almost the entirity of a 5% stake in SAN on-market since December.

Someone has concluded the share is cheap at current pricing given quota and other assets. Not to mention moves by the current Government to free up consenting, including maritime.

Not that the market is saying so with regard to price. As this is just a required initial disclosure having reached the threshold I wonder if buying will continue?

And today an amended SPH Notice is filed indicating ANZ Investments actually started accumulating in 2018 rather than december 2023. Puts a different perspective on things.

As an aside, it has always amazed me the number of NZX announcements that need to be retracted or amended shortly after lodging. It is indicative that quite a few people "fail" when it comes to detail/checking and review. It's easy to say human fallibility is the answer, but actually the manifest lack of due care and attention is deeper than that.